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Cross-Listing Waves

Published online by Cambridge University Press:  02 March 2016

Sergei Sarkissian  and
Michael J. Schill
Sergei Sarkissian*
Affiliation:
[email protected], McGill University, Faculty of Management, Montreal, QC H3A 1G5, Canada, and Yerevan State University, Yerevan, Armenia (visiting)
Michael J. Schill
Affiliation:
[email protected], University of Virginia, Darden Graduate School of Business Administration, Charlottesville, VA 22906.
*
*Corresponding author: [email protected]
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Abstract

Using a 57-year global foreign listing sample, we identify cross-listing waves at the host market, home market, and industry levels. Waves in host markets are often due to cross-listing waves in proximate home markets. Consistent with gravity-model implications and economic-synergy arguments of cross-listing decisions, cross-listing waves in a given host country coincide with the outperformance of the host and proximate home countries’ economies and financial markets. The valuation gains from listings associated with cross-listing waves are transitory, supporting the market-timing component in these decisions. Our results provide novel evidence of nonmonotonic market development across countries and over time.

Type
Research Articles
Information
Journal of Financial and Quantitative Analysis , Volume 51 , Issue 1 , February 2016 , pp. 259 - 306
Copyright
Copyright © Michael G. Foster School of Business, University of Washington 2016 

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