Does Corporate Control Determine the Cross-Listing Location?
Posted: 4 Nov 2008 Last revised: 9 Aug 2011
There are 2 versions of this paper
Does Corporate Control Determine the Cross-Listing Location?
Date Written: June 1, 2008
Abstract
This paper explains the choice of the cross-listing location with particular emphasis on the level of investor protection provided by the host market. We find that firms with concentrated control, with a higher level of risk and those with more pronounced financing needs cross-list on a market with better investor protection. We also find support for the bonding hypothesis as firms from markets with weak shareholder protection tend to cross-list on markets with significantly higher shareholder protection.
Keywords: Cross-listing, Corporate governance, Corporate control, Investor protection
JEL Classification: G32, G34, G39
Suggested Citation: Suggested Citation