Why Companies Participate in Cross-Listing Financial Essays
This study examines how family values in a firm can influence non-market strategies. Given that family members on the board tend to pursue non-economic, especially family-related, values, we seek to specify how the perspectives, values, and tastes of family members serving on the board can be injected into firm performance. International business has a plethora of benefits and opportunities, from entering new markets to spreading risk. It enables companies to benefit from economies of scale, greater purchasing power, product differentiation and the growth of the economy in developing countries. All these factors contribute to making selective hedging to have the financial strength to bear the additional risk of action. their market views. On the other hand, Stul z 1996 and Campbell and Kracaw 1999 provide a solution. Cross-listing, also called dual-listing, is the practice of a company listing its shares on multiple stock exchanges. For example, a company based in country A might decide to list its shares not only on the local stock exchange, but also on an exchange in country B. By doing this, the company's shares become available for trading. Our empirical analysis suggests that both real and accrual-based earnings controls are present around cross-listings in the US market, confirming previous studies indicating a trade-off of the two types in other major corporate events such as stock listings. In our sample, real earnings management is the key to success. Cross-listing offers several strategic advantages for companies willing to deal with the complexities. An important advantage is the ability to trade shares in multiple time zones, increasing liquidity. This longer trading time can attract a wider range of investors. Another important advantage is access to fresh. Cross-listing explained. Cross-listing is a common practice among many multinational companies. Whenever a company launches an IPO and goes public by listing its shares on the stock exchange, the domestic stock exchange is the first choice. There is a domestic stock exchange located in the same country as the company. So when a company cross-listing achieves two things for an issuer. First, it tends to increase the liquidity of the security because there are more places to buy and sell, more participants in the market, and sometimes more time to trade the stock if the exchanges are in different time zones located. Second, it often helps the issuer raise more capital. The first set of studies focuses on the antecedents of the decision to issue side effects. They try to determine which types of companies are listed abroad and why they do so. The second set of studies focuses on the outcomes of cross-listing, both in terms of financial returns and other non-financial consequences.