Title

Cross-listing, Information Environment, and Market Value: Evidence from U.S. Firms That List on Foreign Stock Exchanges

Abstract

This paper examines how cross-listing impacts analyst coverage and forecast accuracy for U.S. firms that cross-list on foreign exchanges. by focusing on U.S. firms cross-listing abroad, we are able to discriminate between two competing explanations for the improvements in information intermediation experienced by foreign firms cross-listing in the U.S. (Lang, Lins, and Miller 2003); that is, whether the improvements are driven by generic cross-listing effects or by the strict disclosure and regulatory requirements specific to the U.S. markets. Our cross-sectional analysis indicates that cross-listing is negatively associated with analyst coverage, and our time-series analysis yields only marginal evidence of post-cross-listing improvement in forecast accuracy. Thus the cross-listing benefits documented in prior research for foreign firms cross-listing in the U.S. Are not generalizable to all cross-listings and may be attributable to the strong disclosure and regulatory environment prevalent in the United States.

Department(s)

Business and Information Technology

Keywords and Phrases

Cross-Listing; Information Environment; Market Value

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2008 American Accounting Association, All rights reserved.


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