|
Valuation, Ownership and Visibility Effects of Multiple Cross-listings for European Firms.
Christina Dargenidou,
University of Exeter
Aziz Jaafar, University of Wales
ABSTRACT. The aim of this study is to contribute to the on-going research on the cross-listing effects taking into account a comprehensive coverage of the cross-listing destinations of European firms. It is shown that the exposure of the firm across European markets is an influential determinant of the cross-listing effect in terms of valuation, ownership structure and analyst following. More over, it is shown that the US listing exerts significant incremental influence in the ownership structure and visibility of the firm. However, even after controlling for industry, country effects and the self-selection bias of the cross-listed firms, the valuation effects of the cross-listing are shown to be mostly attributed to the exposure of the firm to a larger investor base which could be either the European or the US market consistent with the Merton’s “awareness hypothesis”.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|