Why do Chinese firms cross-list in the United States?

An interesting aspect to study the convergence of corporate governance is cross-listing. Cross-listing is when a company lists its shares on more than one stock exchange. In recent decades, there has been a drastic increase in cross-listing. Firms from around the world have sought to list their shar...

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Bibliographic Details
Main Authors: Peng, Mike, Blevins, D.
Format: Book Chapter
Published: 2012
Online Access:http://hdl.handle.net/20.500.11937/50615
Description
Summary:An interesting aspect to study the convergence of corporate governance is cross-listing. Cross-listing is when a company lists its shares on more than one stock exchange. In recent decades, there has been a drastic increase in cross-listing. Firms from around the world have sought to list their shares in the US. China, with its burgeoning economy, provides a natural starting point in developing a theoretical framework for understanding why firms cross-list in the US. We contribute to the strategy and management literature by using an institution-based view in developing a theoretical framework for understanding the phenomenon of why some Chinese firms cross-list in the US.