Please use this identifier to cite or link to this item: https://ktisis.cut.ac.cy/handle/10488/6891
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.
URI: http://ktisis.cut.ac.cy/handle/10488/6891
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 
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