Resource title

The dark side of international cross-listing: effects on rival firms at home

Resource image

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Resource description

We analyze the stock price impact of firms U.S. cross-listing on home-market rival firms. Using an empirical event study approach we find negative cumulative average abnormal returns for the rival firms. The evidence suggests that the dominant effect is that investors see rivals as at a relative disadvantage to the listing firm. As firms cross-list in the US and commit to the increased disclosure and investor protection associated with the US listing, they are better able to take advantage of growth opportunities relative to their non cross-listing counterparts, and this results in negative spillover effects on rival firms.

Resource author

Michael Melvin, Magali Valero

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26218

Resource license

Adapt according to the presented license agreement and reference the original author.