Does cross-listing signal quality
The literature on cross-listing generally conveys the impression that cross-listing is good news about a firm. This paper focuses on returns following cross-listing where evidence of positive results from cross-listing is mixed. considering 81 Australian firms, we find that cross-listed firms are...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Elsevier Ltd
2006
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/22032 |
| _version_ | 1848750756582129664 |
|---|---|
| author | Durand, Robert Gunawan, F. Tarca, A. |
| author_facet | Durand, Robert Gunawan, F. Tarca, A. |
| author_sort | Durand, Robert |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The literature on cross-listing generally conveys the impression that cross-listing is good news about a firm. This paper focuses on returns following cross-listing where evidence of positive results from cross-listing is mixed. considering 81 Australian firms, we find that cross-listed firms are less profitable with higher debt levels prior to cross-listing and that they achieve significant negative abnormal returns in the three years following cross-listing. This result holds even for firms seeking the benefits of “bonding” to US disclosure requirements by cross-listing in the more regulated US markets. Our study suggests cross-listing is not an unambiguous positive signal about a firm. |
| first_indexed | 2025-11-14T07:41:53Z |
| format | Journal Article |
| id | curtin-20.500.11937-22032 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:41:53Z |
| publishDate | 2006 |
| publisher | Elsevier Ltd |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-220322017-02-28T01:36:15Z Does cross-listing signal quality Durand, Robert Gunawan, F. Tarca, A. cross-listing long-run abnormal returns The literature on cross-listing generally conveys the impression that cross-listing is good news about a firm. This paper focuses on returns following cross-listing where evidence of positive results from cross-listing is mixed. considering 81 Australian firms, we find that cross-listed firms are less profitable with higher debt levels prior to cross-listing and that they achieve significant negative abnormal returns in the three years following cross-listing. This result holds even for firms seeking the benefits of “bonding” to US disclosure requirements by cross-listing in the more regulated US markets. Our study suggests cross-listing is not an unambiguous positive signal about a firm. 2006 Journal Article http://hdl.handle.net/20.500.11937/22032 Elsevier Ltd restricted |
| spellingShingle | cross-listing long-run abnormal returns Durand, Robert Gunawan, F. Tarca, A. Does cross-listing signal quality |
| title | Does cross-listing signal quality |
| title_full | Does cross-listing signal quality |
| title_fullStr | Does cross-listing signal quality |
| title_full_unstemmed | Does cross-listing signal quality |
| title_short | Does cross-listing signal quality |
| title_sort | does cross-listing signal quality |
| topic | cross-listing long-run abnormal returns |
| url | http://hdl.handle.net/20.500.11937/22032 |