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Journal of Corporate Finance Vol. 14 No. 3 2008

Does corporate control determine the cross-listing location?

Wissam Abdallah1; Marc Goergen2,3

1 Lebanese American University · 2 European Corporate Governance Institute · 3 University of Sheffield

Abstract

This paper explains the choice of the cross-listing location with particular emphasis on the level of investor protection provided by the host market. We find that firms with concentrated control, with a higher level of risk and those with more pronounced financing needs cross-list on a market with better investor protection. We also find support for the bonding hypothesis as firms from markets with weak shareholder protection tend to cross-list on markets with significantly higher shareholder protection.

DOI
10.1016/j.jcorpfin.2008.03.003
Volume
14
Issue
3
Pages
183-199
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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