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The impact of cross-listing in the United States on the precision of public and private information

Author

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  • Don Herrmann

    (William S. Spears School of Business, Oklahoma State University, Stillwater, USA)

  • Tony Kang

    (DeGroote School of Business, McMaster University, Hamilton, Canada)

  • Yong Keun Yoo

    (Korea University Business School, Korea University, Seoul, Korea)

Abstract

Our study explores the source of improvement in the information environment from cross-listing shares on US stock exchanges. Are the improvements from cross-listing in the United States achieved more through public or private information channels? While we find evidence that US cross-listing is significantly associated with improvements in both public and private information precision, the association is stronger between cross-listing and improvements in private information precision. This suggests that the improvement in the information environment for cross-listed firms is largely due to analysts expending more effort on firm-specific information discovery as opposed to broader improvements in overall public disclosure. This research should influence international business scholars that improvements in the information environment do not occur solely through public information channels. They also occur through investors’ private information search activities.

Suggested Citation

  • Don Herrmann & Tony Kang & Yong Keun Yoo, 2015. "The impact of cross-listing in the United States on the precision of public and private information," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 87-103, January.
    • Handle: RePEc:pal:jintbs:v:46:y:2015:i:1:p:87-103
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    Citations

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    Cited by:

    1. Chang Liu & Chune Young Chung & Hong Kee Sul & Kainan Wang, 2018. "Does hometown advantage matter? The case of institutional blockholder monitoring on earnings management in Korea," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 196-221, February.
    2. Tiemei Li & Michel Magnan & Yaqi Shi, 2022. "Governance tensions in MNCs’ accounting quality," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1641-1669, October.
    3. Purkayastha, Anish & Kumar, Vikas, 2021. "Internationalization through foreign listing: A review and future research agenda," Journal of World Business, Elsevier, vol. 56(3).
    4. Sèna Kimm Gnangnon, 2022. "Export diversification and financial openness," International Economics and Economic Policy, Springer, vol. 19(4), pages 675-717, October.
    5. Neupane, Biwesh & Thapa, Chandra & Marshall, Andrew & Neupane, Suman, 2021. "Mimicking insider trades," Journal of Corporate Finance, Elsevier, vol. 68(C).
    6. Temouri, Yama & Driffield, Nigel & Bhaumik, Sumon Kumar, 2016. "A strategic perspective of cross-listing by emerging market firms: Evidence from Indonesia, Mexico, Poland and South Africa," Journal of International Management, Elsevier, vol. 22(3), pages 265-279.

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