Legal bonding, investor recognition, and cross-listing premia in emerging markets. Economics Finance & Accounting Working Paper Series N226-12.
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.
||Cross-listing; investor recognition; legal bonding; emerging markets; Tobin’s q; Working Paper N226-12;
||Faculty of Social Sciences > Economics, Finance and Accounting
Ms Sandra Doherty
||14 Aug 2012 15:37
||National University of Ireland Maynooth
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