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Title: Cross-listing and operating performance: evidence from exchange-listed American depositary receipts
Authors: Charitou, Andreas G. 
Louca, Christodoulos 
Keywords: Stock exchanges;Stock exchanges Accounting;ADR Program
Issue Date: 2009
Publisher: Wiley
Source: Journal of Business Finance and Accounting, 2009, Volume 36, Issue 1-2, Pages 99-129
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: 0306686X
DOI: 10.1111/j.1468-5957.2009.02123.x
Rights: © Blackwell Publishing Ltd
Type: Article
Appears in Collections:Άρθρα/Articles

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