Publication Type

Journal Article

Publication Date

5-2008

Abstract

We show that investor recognition and bonding associated with a U.S. cross-listing are distinct effects using a sample of Canadian firms. In contrast to the post-listing decline documented in the literature, we find that cross-listed firms with a single class of shares enjoy a permanent increase in valuation if they attract and maintain investor recognition over time. Valuations of firms that fail to widen their U.S. shareholder base return to pre-listing levels within two years. Cross-listed firms with dual-class shares exhibit a permanent increase in valuation regardless of the level of U.S. investor holdings, consistent with firm-level bonding.

Discipline

Accounting | Corporate Finance

Research Areas

Financial Performance Analysis

Publication

Review of Financial Studies

Volume

22

Issue

6

First Page

2393

Last Page

2421

ISSN

0893-9454

Identifier

10.1093/rfs/hhn050

Publisher

Oxford University Press

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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