Cross-listing Premium in the US and the UK Destination

Abstract

This paper tests the main hypothesis that firms that cross-list have higher valuations, and provides on the valuation effect of cross-listing on a major non-US market, the UK compared to the US market from source countries in the Asia-Pacific region in 2003-2004. We find evidence that there is a cross-listing premium in both markets. However, the evidence on whethr the premium is significantly different in the two countries is mixed. Using univariate, OLS and random effects methods, we find some evidence that the premium in the US is higher, but using a treatment effect methodology we find that the differecne is not robust. that offers new techniques and data sources.