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The role of segmentation and investor recognition through the lens of cross-listing activity
BibTeX
@MISC{Carrieri_therole,
author = {Francesca Carrieri and Xavier Mouchette and Aline Muller},
title = {The role of segmentation and investor recognition through the lens of cross-listing activity},
year = {}
}
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Abstract
We focus on the price effects occurring around cross-listing and research the impact of the sequencing of cross-listing, defined as the cumulative number of companies having an active cross-listing among more than 1,800 firms from 41 countries over three decades. We examine whether the segmentation hypothesis is a relevant driver of price effects, whether the improvement in the firm information subsumes these effects, and to what extent both channels are affected by the cross-listing activity from the home country of the underlying security. Controlling for home-country governance level and firm-specific liquidity, we find that support for the segmentation hypothesis is statistically stronger for Emerging Market companies listing outside US markets while the improvement in the firm’s information environment is the most important driver of the positive price effects for companies cross-listed on US hosts. We also find that cross-listing activity prior to
Keyphrases
segmentation hypothesis price effect cross-listing activity outside u market xavier mouchette underlying security firm information home-country governance level positive price effect market company important driver active cross-listing aline muller relevant driver investor recognition firm-specific liquidity home country information environment u host cumulative number cross-listing activity francesca carrieri
