THE EFFECT OF CROSS LISTING: EVIDENCE FROM THE AUSTRALIAN MARKET
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This study investigates the effects of cross listing activities for Australian listed companies. In particular an analysis is made of the financial characteristics of cross-listed companies, and the companies’ choice of foreign stock markets. We also conduct a joint test of the investor awareness, market segmentation, signaling, liquidity and shareholder base hypotheses by examining company post foreign listing stock price performance. The results of this study exhibit four main conclusions. First, cross listed companies are on average larger and more profitable than their non-cross listing counterparts. Secondly, Australian companies in general are less likely to cross list on a foreign market whose regulation is more rigorous than the domicile market. Thirdly, cross listing companies’ short-term post foreign listing share performance is generally significantly positive. Finally, cross listing tends to decrease the systematic risk of a firm.
Abstract
This study investigates the effects of cross listing activities for Australian listed companies. In particular an analysis is made of the financial characteristics of cross-listed companies, and the companies’ choice of foreign stock markets. We also conduct a joint test of the investor awareness, market segmentation, signaling, liquidity and shareholder base hypotheses by examining company post foreign listing stock price performance. The results of this study exhibit four main conclusions. First, cross listed companies are on average larger and more profitable than their non-cross listing counterparts. Secondly, Australian companies in general are less likely to cross list on a foreign market whose regulation is more rigorous than the domicile market. Thirdly, cross listing companies’ short-term post foreign listing share performance is generally significantly positive. Finally, cross listing tends to decrease the systematic risk of a firm.