Journal of Banking & Finance Vol. 34 No. 6 2010
Domestic liquidity and cross-listing in the United States
Abstract
This study examines changes in domestic liquidity after cross-listing in the United States. Our liquidity measures are based on intraday data from domestic markets for a large sample of firms that cross-list in the United States and for a matched sample of firms that do not cross-list. We find that unadjusted liquidity significantly improves after cross-listing. However, after controlling for contemporaneous changes in liquidity for a matched sample of firms that do not cross-list, there is no evidence of improvements in domestic liquidity due to cross-listing. Our results offer no support for the bonding hypothesis, or for the hypothesis that cross-listing improves domestic liquidity because of increased intermarket competition and additional order flow.
- DOI
- 10.1016/j.jbankfin.2009.11.011
- Volume
- 34
- Issue
- 6
- Pages
- 1139-1151
- Language
- en
- Sources
- crossref openalex bibtex:phds-export.bib