Benefits of and the costs to companies of cross listing
Table of Content
1 Introduction......................................
1 Introduction
There has been a considerable change in the framework of international equity markets
through the last seve...
This document is provided by:
VU Thuy Dung (Ms.)
Manager
Center for Online Writing Resources
Facebook : https://www.facebo...
Bianconi, M., & Tan, L. (2010). Cross-listing Premium in the US and the UK Destination.
International Review of Economics ...
Domowitz, I., Glen, J., and Madhavan, A. (1997) Market segmentation and stock prices: Evidence
from an emerging market, Jo...
Hilgert, M. (2005). Discussion of the empirical evidence regarding the merit of companies cross-
listing their shares on f...
Levine, R., & Schmukler, S. L. (2006). Internationalization and stock market liquidity. Review of
Finance, 10(1), 153-187....
Sarkissian, S., & Schill, M. (2010). Cross listing waves. Munich University Library
Shi, Y., Magnan, M., & Kim, J. B. (201...
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124. benefits of and the costs to companies of cross listing

  1. 1. Benefits of and the costs to companies of cross listing Table of Content 1 Introduction.......................................................................................................................... 1 2 Motivation for cross listing.................................................................................................. 2 3 Real effects of cross listing.................................................................................................. 4 4 Conclusion ........................................................................................................................... 9 Reference.................................................................................................................................. 10
  2. 2. 1 Introduction There has been a considerable change in the framework of international equity markets through the last several decades due to the fact that the development in technology and the liberalization of capital flow have reduced the obstacles which shielded national marketplaces from the other (Charitou and Louca, 2009). Nonetheless, whilst nowadays it is much easier to get access to foreign capital marketplaces for investors, geography has not been unrelated yet. Confrontations to global capital flows, for example legal limitations to capital mobility and foreign owning, the expenses in association with doing business and getting data on companies listed overseas, and worries regarding investor defense in firm foreign controls, yet is in existence. The segment of marketplaces which stem from such obstacles is making up stimulations for corporate managers for the adaptation of financial policies for example global cross-listing, in which a company lists its shares for business transaction on at least two stock exchanges with the location in various territories. The target of this writing is to discover the root causes for advantages and the expenses to firms of cross listing. ………………………………………………………………………………………………….. 2 Conclusion Obviously, overseas companies have raised their cross-listing transactions within the past twenty years. Overseas companies did make cautious identification and evaluation of the cross- listing elements which create advantages to such companies and the correlated expenses. Overseas companies after that calculated the advantages and expenses prior to the consummation of the cross-listing. The elements which overseas companies deem to take into consideration on creating the cross-listing decision with the inclusion of the impact on expense of capital, raised entrance to capital, development via mergers and acquisitions, the influence on share rate, the straight expense of cross-listing, the hazard of responsibility in relation with the registration declarations, the impact on liquidity and firm geographic concerns. The other elements in creating the cross-listing determination comprise the straight expense of the total spread, transaction expenses, indirect expense of under-pricing, impact of capitalization on goods market fame, impact of depending on overseas skill, globalization of capital marketplaces and impact of shield of minority interests.
  3. 3. This document is provided by: VU Thuy Dung (Ms.) Manager Center for Online Writing Resources Facebook : https://www.facebook.com/vu.thuydung.5076 Email : assignmentsource@gmail.com Blogger : http://assignmentsource.blogspot.com/ Website : http://assignmentsource.com/ Reference Ayyagari, M. (2004). Does Cross-listing Lead to Functional Convergence?: Empirical Evidence (Vol. 3264). World Bank, Development Research Group, Finance. Bailey, W., Andrew Karolyi, G., & Salva, C. (2006). The economic consequences of increased disclosure: Evidence from international cross-listings. Journal of Financial Economics, 81(1), 175-213. Baker, H. K., Nofsinger, J. R., & Weaver, D. G. (2002). International cross-listing and visibility. Journal of Financial and Quantitative Analysis, 37(3), 495-521. Baker, K. and Meeks, S. (1991) Research on exchange listings and delistings: A review and synthesis, Financial Practice and Education 1, 57–7 Banalieva, E. R., & Robertson, C. J. (2010). Performance, diversity, and multiplicity of foreign cross-listing portfolios. International Business Review, 19(6), 531-547. Bancel, F., Kalimipalli, M., & Mittoo, U. R. (2004). Industry-relative Performance of European Listings in the US. Wilfrid Laurier University Working Paper. Bauer, R., Wojcik, D., & Clark, G. L. (2004). Corporate governance and cross-listing: evidence from european companies.
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