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Article
Cross-listing, Information Environment, and Market Value: Evidence from U.S. Firms That List on Foreign Stock Exchanges
Journal of International Accounting Research
  • LiLi Eng, Missouri University of Science and Technology
  • Sandeep Nabar
  • G. Mujtaba Mian
Abstract

This paper examines how cross-listing impacts analyst coverage and forecast accuracy for U.S. firms that cross-list on foreign exchanges. by focusing on U.S. firms cross-listing abroad, we are able to discriminate between two competing explanations for the improvements in information intermediation experienced by foreign firms cross-listing in the U.S. (Lang, Lins, and Miller 2003); that is, whether the improvements are driven by generic cross-listing effects or by the strict disclosure and regulatory requirements specific to the U.S. markets. Our cross-sectional analysis indicates that cross-listing is negatively associated with analyst coverage, and our time-series analysis yields only marginal evidence of post-cross-listing improvement in forecast accuracy. Thus the cross-listing benefits documented in prior research for foreign firms cross-listing in the U.S. Are not generalizable to all cross-listings and may be attributable to the strong disclosure and regulatory environment prevalent in the United States.

Department(s)
Business and Information Technology
Keywords and Phrases
  • Cross-Listing,
  • Information Environment,
  • Market Value
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2008 American Accounting Association, All rights reserved.
Publication Date
1-1-2008
Publication Date
01 Jan 2008
Disciplines
Citation Information
LiLi Eng, Sandeep Nabar and G. Mujtaba Mian. "Cross-listing, Information Environment, and Market Value: Evidence from U.S. Firms That List on Foreign Stock Exchanges" Journal of International Accounting Research (2008) ISSN: 1542-6297
Available at: http://works.bepress.com/lili-eng/15/