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The long- and short-run financial impacts of cross listing on Australian firms

Author

Listed:
  • Yen Hou Ng

    (Department of Accounting and Finance, Monash University, Australia)

  • Hue Hwa Au Yong

    (Department of Accounting and Finance, Monash University, Australia)

  • Robert Faff

    (UQ Business School, University of Queensland, Australia)

Abstract

This paper investigates the short-run and long-run performance of Australian cross-listed firms relative to their industry rivals. The role of share trading liquidity and firm visibility in explaining abnormal returns is also investigated. In the short run, an abnormal return of 1.91% for cross-listed firms is found at announcement, while no significant abnormal returns is found for rivals on the event day. For the long-run analysis, only rival firms (especially for rivals of the non-market leaders) experience significant abnormal returns, which are negative. Cross listing into NEW ZEALAND and other countries induces a more negative impact on rivals than the UK. Lastly, liquidity is found to be a determinant of the short- and long-run abnormal returns.

Suggested Citation

  • Yen Hou Ng & Hue Hwa Au Yong & Robert Faff, 2013. "The long- and short-run financial impacts of cross listing on Australian firms," Australian Journal of Management, Australian School of Business, vol. 38(1), pages 81-98, April.
    • Handle: RePEc:sae:ausman:v:38:y:2013:i:1:p:81-98
    DOI: 10.1177/0312896212437622
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    References listed on IDEAS

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    1. Benson, Karen & Faff, Robert & Smith, Tom, 2015. "Injecting liquidity into liquidity research," Pacific-Basin Finance Journal, Elsevier, vol. 35(PB), pages 533-540.

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