O'Connor, Thomas G. (2007) Does cross listing in the U.S. really enhance the value of emerging market firms? National University of Ireland Maynooth. (Unpublished)

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Abstract

In this paper, I study the valuation effects of cross listing in the U.S. for a panel of emerging market firms over the period from 1990 to 2003. In line with Kristian-Hope et al. (2007), I find that only those firms from high disclosure regimes gain from Level 2/3 listing in the U.S. The gains are not immediate, but materialize once the firm has listed in the U.S. for at least five years. I also document long-term, but not immediate valuation gains for Level 1 over-the-counter issues. In contrast to Level 2/3 issues, the gains are concentrated amongst firms from low-disclosure regimes. I find no positive valuation effects for Rule 144a private placements. The results suggest that the decision on the part of the majority of firms from low-disclosure regimes not to list as exchange traded depositary receipts is warranted.

Item Type:	Other
Additional Information:	Part of the Department of Economics Working paper Series N184/12/07
Keywords:	Cross listing; corporate valuation; emerging markets;
Academic Unit:	Faculty of Social Sciences > Economics, Finance and Accounting
Item ID:	828
Depositing User:	Ms Sandra Doherty
Date Deposited:	12 Dec 2007
Publisher:	National University of Ireland Maynooth
Refereed:	No
URI:	http://www.nuim.ie/academic/economics/ http://ideas.repec.org/s/nuim/mayecw.htm...
Use Licence:	This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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