Cross-listing and crisis

We examine the role of US cross-listing during the global financial crisis of 2007–2009. By adopting a unique matched-pairs approach, we find that cross-listed firms outperform non-cross-listed peers, particularly during and post the crisis. We also find that firms cross-listed on the unregulated OT...

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Bibliographic Details
Published inJournal of asset management Vol. 22; no. 7; pp. 539 - 558
Main Author Ghadhab, Imen
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan UK 01.12.2021
Palgrave Macmillan
Subjects
Economic crisis
Economics and Finance
Finance
Financial Services
Globalization
Hypotheses
International finance
Market segmentation
Original Article
Risk Management
Stockholders
United States > US
Firm performance
bonding hypothesis
Cross-listing
Crisis
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Summary:We examine the role of US cross-listing during the global financial crisis of 2007–2009. By adopting a unique matched-pairs approach, we find that cross-listed firms outperform non-cross-listed peers, particularly during and post the crisis. We also find that firms cross-listed on the unregulated OTC market exhibit more positive performance after the crisis than firms cross-listed on the US-regulated exchanges. Therefore, any implication of cross-listing is due essentially to pure cross-listing rather than better foreign information and investor protection environment. We find, however, mixed results regarding the effects of the controlling variables.
ISSN:1470-8272
1479-179X
DOI:10.1057/s41260-021-00235-z