Does Corporate Control Determine the Cross-Listing Location?

Posted: 4 Nov 2008 Last revised: 9 Aug 2011

See all articles by Wissam Abdallah

Wissam Abdallah

Lebanese American University

Marc Goergen

IE Business School, IE University; European Corporate Governance Institute (ECGI)

Multiple version iconThere are 2 versions of this paper

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

Abdallah, Wissam and Goergen, Marc, Does Corporate Control Determine the Cross-Listing Location? (June 1, 2008). Journal of Corporate Finance, Vol. 14, No. 3, 2008, Available at SSRN: https://ssrn.com/abstract=1292844

Wissam Abdallah

Lebanese American University ( email )

P.O. Box 13-5053
Chouran Beirut 11022801
Beirut
Lebanon

HOME PAGE: http://sb.lau.edu.lb/faculty-research/faculty/fa/dr-wissam-abdallah-1.php

Marc Goergen (Contact Author)

IE Business School, IE University ( email )

Finance Department
Maria de Molina, 12
Madrid, 28006
Spain

HOME PAGE: http://www.ie.edu/business-school/faculty-and-research/faculty/marc-goergen/

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

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