Cross‐Listings and M&amp;A Activity: Transatlantic Evidence

Tolmunen, Pasi; Torstila, Sami

doi:10.1111/j.1755-053x.2005.tb00094.x

Cited by 46 publications

(18 citation statements)

References 33 publications

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“…According to this hypothesis, firms with higher prospects of growth were more likely to cross list, and that high growth firms were likely to have positive valuation effects on both pre-and post-cross-listing. This view was supported by empirical studies by Tolmunen and Torstila (2005).…”

Section: Growth Opportunities Hypothesissupporting

confidence: 59%

Do Cross Listed Firms Thrive Better Under Crisis? Non Parametric Evidence from Zimbabwe.

Mugumisi

2015

SSRN Journal

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This study sought to empirically examine whether cross listed firms perform better than non-cross listed firms in periods of economic crisis. The study reviewed several theories of the motivations for cross listing including the liquidity hypothesis, the market segmentation hypothesis, investor recognition hypothesis and the growth opportunities hypothesis. The study utilised secondary data from companies' published financial statements. A sample of sixteen (16) companies were studied, eight were cross listed, and eight were purely domestically listed. The study period was 2010-2014, and the data for analysis was in form of financial ratios. Data analysis was done using SPSS 16.0. Non-parametric methods; the Mann Whitney U test was used verify if there are differences in the performance of cross listed and non-cross listed firms. The study found that cross listed firms are more efficient, better governed and have higher market value compared to non-cross listed firm. There was however no statistical evidence of differences in the total assets and ability to pay interest obligations between the cross listed and non-cross listed firms..

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Section: Growth Opportunities Hypothesissupporting

confidence: 59%

Do Cross Listed Firms Thrive Better Under Crisis? Non Parametric Evidence from Zimbabwe.

Mugumisi

2015

SSRN Journal

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“…This hypothesis postulates that high growth firms are likely to have positive valuation affects both pre and post cross-listing. This view is supported by empirical studied by Pagano et al, (2002), Tolmunen and Torstila (2005) and Sarkissian and Schill (2011).…”

Section: Introductionsupporting

confidence: 64%

“…7, No. 16;2012 The next step was that of discerning the meanings that are represented by the four components. This is done though picking out the variables that have the highest correlation with the factor and determining what they represent collectively.…”

Section: Resultsmentioning

confidence: 99%

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The Key Reasons for Cross - Listing in East African Stock Exchanges by Firms Listed in the Nairobi Securities Exchange

Waweru¹,

Pokhariyal²,

Mwaura³

et al. 2012

IJBM

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The purpose of this study was to investigate the key reasons behind the decision by the firm management of Nairobi Securities Exchange (NSE) listed firms to cross-list in East African Exchanges. The study employed a descriptive research design. A Likert type questionnaire was administered to the Chief Executive Officers (CEOs) or the Chief Financial Officers (CFOs) of the target firms. The study conducted factor analysis to identify the key reasons for the cross-listing in the East African region. The key reasons identified were investor recognition, expansion of business, boosting of sales and desire to lower the cost of capital. The factor analysis did not provide evidence that legal bonding is a motivation for the cross-listing by NSE firms. The findings from the study appear to indicate that there may exist contextual differences in the decisions to cross-list, consequently generalizations may not suffice.

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“…Empirical studies by Burns (2004) and Tolmunen and Torstila (2005) of crosslistings creating an "acquisition currency" for non-U.S. acquirors of U.S. targets support elements of this theory. The Burns study showed that cross-listed foreign bidders for U.S. targets are significantly more likely to engage in an acquisition than non-cross-listed foreign bidders and they are much more likely to finance the acquisition with equity.…”

Section: The Market For Corporate Control As Monitormentioning

confidence: 65%

The World of Cross-Listings and Cross-Listings of the World: Challenging Conventional Wisdom*

Karolyi

2006

Review of Finance

442

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There has long prevailed a conventional wisdom rationalizing why firms pursue overseas listings. It argues that firms seek such opportunities to benefit from a lower cost of capital that arises because their shares become more accessible to global investors. Much recent evidence challenges this conventional wisdom. In fact, several new research initiatives have been proposed that factor into the overseas listing decision many more complex risks that globalization can create at the firm level, such as agency conflicts, transparency and disclosure concerns, and other corporate governance problems. The goal of this article is to survey, synthesize and critically review this new literature and to identify yet unresolved questions to answer.

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Cross‐Listings and M&A Activity: Transatlantic Evidence

Cited by 46 publications

References 33 publications

Do Cross Listed Firms Thrive Better Under Crisis? Non Parametric Evidence from Zimbabwe.

Do Cross Listed Firms Thrive Better Under Crisis? Non Parametric Evidence from Zimbabwe.

The Key Reasons for Cross - Listing in East African Stock Exchanges by Firms Listed in the Nairobi Securities Exchange

The World of Cross-Listings and Cross-Listings of the World: Challenging Conventional Wisdom*

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