@techreport{Cetorelli2010Firm,
abstract = {This study investigates the valuation impact of a firm's decision to cross-list on a more (or less) prestigious stock exchange relative to its own domestic market. We use network analysis to derive broad market-based measures of prestige for forty-five country or regional stock exchange destinations between 1990 and 2006. We find that firms crosslisting in a more prestigious market enjoy significant valuation gains over the five-year period following the listing. We also document a reverse effect for firms cross-listing in less prestigious markets: These firms experience a significant decline in valuation over the five years following the listing. The reputation of the cross-border listing destinations is therefore a useful signal of a firm's value going forward. Our findings are consistent with the view that cross-listing in a prestigious market enhances a firm's visibility, strengthens corporate governance, and lowers informational frictions and capital costs.},
address = {New York, NY},
author = {Nicola Cetorelli and Stavros Peristiani},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G15; G20; 330; Cross-listings; network analysis},
language = {eng},
number = {474},
publisher = {Federal Reserve Bank of New York},
title = {Firm value and cross-listings: The impact of stock market prestige},
type = {Staff Report, Federal Reserve Bank of New York},
url = {http://hdl.handle.net/10419/60906},
year = {2010}
}
