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Do multiple foreign listings create value for firms?

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  • You, Leyuan
  • Payne, Janet D.
  • Lin, Steve Wen-Jen

Abstract

In this paper, we study whether firms benefit from listing in multiple foreign markets. Employing a global sample of multiple-listed firms, we compare Tobin’s q for firms cross-listed in one versus two or more markets. Our univariate analysis does not find a cross-listing premium; however, firms that are from/cross-list in certain markets do receive higher valuations. A multivariate analysis shows a multiple-listing effect that is robust to controlling for firm and country-level characteristics as well as self-selection bias. Furthermore, we find strong support for the market segmentation and bonding hypotheses, and weak support for the liquidity hypothesis.

Suggested Citation

  • You, Leyuan & Payne, Janet D. & Lin, Steve Wen-Jen, 2018. "Do multiple foreign listings create value for firms?," The Quarterly Review of Economics and Finance, Elsevier, vol. 69(C), pages 134-143.
    • Handle: RePEc:eee:quaeco:v:69:y:2018:i:c:p:134-143
    DOI: 10.1016/j.qref.2017.12.006
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    More about this item

    Keywords

    Multiple cross-listing; Market segmentation; Bonding hypothesis;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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