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Legal bonding, investor recognition, and cross-listing premia in emerging markets

  • Thomas O'Connor

    ()

    (Department of Economics Finance and Accounting, National University of Ireland, Maynooth)

Using the IFC investable measure to designate firms as either investable or non-investable prior to cross-listing, I show that Level 2/3 cross-listing firms that were previously non-investable enjoy the largest “cross-listing premia”. Since previously non-investable firms are likely to experience the largest increase in their shareholder base post-listing, the results are consistent with the notion that enhanced “recognition” explains cross-listing premia. For these firms, a combination of bonding and greater recognition serves to deliver the largest cross-listing premia. For previously investable firms, bonding alone is sufficient to generate cross-listing premia.

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File URL: http://repec.maynoothuniversity.ie/mayecw-files/N226-12.pdf
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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n226-12.pdf.

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Length: 32 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:may:mayecw:n226-12.pdf
Contact details of provider: Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting

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