Market timing as an explanation for the short‐lived premium on cross‐listing

This study provides further evidence on the cross‐listing valuation premium using a sample of Asian firms from 2000 to 2010. First, following Doidge et al . (2004), we document a premium, but it disappears when we incorporate firm fixed effects. Second, consistent with Gozzi et al . (2008), we find that the premium arises immediately preceding the cross‐listing year and disappears shortly thereafter. Of central interest, consistent with our proposition that the listing is strategically timed like an SEO , we document a similar pattern in operating performance, and increased financing activity in the listing year and the following 2 years.