Premium
Market timing as an explanation for the short‐lived premium on cross‐listing
Author(s) -
Clarkson Peter M.,
Gray Stephen F.,
Ragunathan Vanitha
Publication year - 2018
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12310
Subject(s) - cross listing , listing (finance) , valuation (finance) , business , accounting , economics , sample (material) , financial economics , monetary economics , econometrics , finance , corporate governance , chemistry , chromatography
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.