Cross-listing and the scope of the firm

Abstract

Abstract"What determines the scope of the firm?" is one of the most fundamental questions in strategic management and international business. Yet no previous research has investigated the relationship between the scope of the firm and cross-listing-a firm listing its stock on overseas exchanges. We leverage the resource-based and institution-based views with a focus on cross-listed firms from emerging economies. We predict that cross-listing may result in a narrower product scope in the short run, a wider product scope in the long run, an expanded geographic scope overall, and a higher propensity to engage in mergers and acquisitions in the host country.

Ownership Control of Foreign Affiliates: A Property Rights Theory Perspective

“…Here, as well as providing finance, a key contribution of foreign investors may be to signal the governance quality so that external finance may be acquired at lower cost. This extends the analysis of emerging market firms of Khanna and Palepu (1999), based on the signalling approach of Peng and Su (2014). Consistent with this, the contribution of the foreign firm, both in terms of the direct provision of capital, but also of signalling and monitoring, may be a key determinant of the prevailing ownership structure, affecting the allocation of property rights where financial markets are weak.…”

Mergers and acquisitions in and out of emerging economies

“…But this assumption is not necessarily valid in EE (Peng & Heath, 1996). How institutions directly and indirectly affect M&As taking place in EE and between acquirers in EE and targets in DE thus remains to be seen (Peng & Su, 2014).…”

The Signaling Effect of Corporate Social Responsibility in Emerging Economies

“…Therefore, we included family business, a dummy variable controlling for family ownership, and cross-listing, a dummy variable controlling for overseas public listing. We did this because firms from emerging economies that are listed in foreign markets may have a higher propensity for adopting new practices such as CSR, and investors are better able to acquire abundant and high-quality information on cross-listed firms (Bell et al 2011;Peng and Su 2014). In addition, we added year dummies and industry dummies to control for unobserved heterogeneity.…”