Cross Listing and Subsequent Delisting in Foreign Markets

Download or read book Cross Listing and Subsequent Delisting in Foreign Markets written by Leyuan You and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Employing a sample of stocks cross listed and subsequently delisted from foreign markets, we examine the consequences of delisting in terms of price, risk, volume, and liquidity. We also provide a direct comparison between the firm's performance due to foreign cross listing and its subsequent delisting. We find a positive cross listing and a negative delisting effect on stock price, both of which dissipate in the long run. No significant changes in the market risk are found for either case. Foreign cross listing and delisting are associated with increasing and decreasing long term trading volume respectively. Further, the bonding hypothesis fails to explain the listing premium and the delisting loss.