Sarkissian, Sergei and Schill, Michael (2010): Why are U.S. firms listed in foreign markets worth more?
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An expanding literature asserts that non-U.S. firms achieve a value premium for listing on U.S. equity markets. In this paper we examine the foreign listing premium across a global sample of home and host markets, including U.S. firms that list on non-U.S. stock exchanges. We find that the value premium of U.S. firms that list abroad is similar to that of non-U.S. firms that list on U.S. exchanges, and that many other home and host markets manifest a foreign listing premium. The cross-sectional variation in the value premium appears to have little association with any unique institutional feature of the market; rather it is related to variation in pre-listing valuation ratios. We establish that the foreign listing premium disappears once we control for the firm’s pre-listing valuation ratio.
|Item Type:||MPRA Paper|
|Original Title:||Why are U.S. firms listed in foreign markets worth more?|
|English Title:||Why are U.S. Firms Listed in Foreign Markets Worth More?|
|Keywords:||Cross listings; Firm valuation; Rule of law; Stock exchanges; Tobin’s Q|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
|Depositing User:||Sergei Sarkissian|
|Date Deposited:||23. Dec 2010 21:25|
|Last Modified:||12. Feb 2013 14:00|
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