Please use this identifier to cite or link to this item:
Title: Cross-listing and operating performance: evidence from exchange-listed American depositary receipts
Authors: Charitou, Andreas 
Louca, Christodoulos 
Major Field of Science: Social Sciences
Field Category: Economics and Business
Keywords: Cross-listing;Level II;Level III;Operating performance
Issue Date: Jan-2009
Source: Journal of Business Finance & Accounting, 2009, vol. 36, no. 1-2, pp. 99-129
Volume: 36
Issue: 1-2
Start page: 99
End page: 129
Journal: Journal of Business Finance & Accounting 
Abstract: In this paper we examine the operating performance of non-US firms that enter major US stock exchanges using American Depositary Receipt (ADR) programs. Our dataset consists of 108 capital-raising and non-capital-raising firms from twenty four countries, cross-listed on major US stock exchanges during the period 1994-2004. We provide evidence that capital-raising cross-listed firms experience improvements in their operating performance after the listing, relative to a non-cross-listed matched sample of firms and relative to the pre-listing period, whereas non-capital-raising cross-listed firms out-perform a non-cross-listed matched sample of firms for both the pre-listing and the post-listing periods. These results suggest that the type of ADR program conveys information about changes in the post-listing operating performance. Moreover, both capital-raising and non-capital-raising cross-listed firms have positive abnormal returns due to the cross-listing and these abnormal returns are positively related with the post-listing abnormal changes in operating performance, suggesting that the market anticipates the post-listing abnormal changes in operating performance. Results are robust after adjusting for various firm and country risk characteristics.
ISSN: 1468-5957
DOI: 10.1111/j.1468-5957.2009.02123.x
Rights: © Wiley
Type: Article
Affiliation: University of Durham, United Kingdom 
Affiliation : University of Cyprus 
Durham University 
Durham University Business School 
Appears in Collections:Άρθρα/Articles

CORE Recommender
Show full item record


checked on May 24, 2022

Citations 50

Last Week
Last month
checked on May 23, 2022

Page view(s)

Last Week
Last month
checked on May 26, 2022

Google ScholarTM



Items in KTISIS are protected by copyright, with all rights reserved, unless otherwise indicated.