On the fortunes of stock exchanges and their reversals: evidence from foreign listings

Nuno Fernandes, Mariassunta Giannetti*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

Abstract

Using a sample that provides unprecedented detail on foreign listings for 29 exchanges in 24 countries starting from the early 1980s, we show that although firms list in countries with better investor protection, they are less likely to list in countries with excessively stronger investor protection. We provide evidence based on ex ante firm and market characteristics and ex post listing outcomes that our findings are due to lack of investor interest in firms from environments with much weaker investor protection. We also argue that our findings, together with a general trend of improvement in investor protection in many firms' countries of origin, can explain why US and UK exchanges have attracted an increasing number of foreign listings during our sample period.
Original languageEnglish
Pages (from-to)157-176
Number of pages20
JournalJournal of Financial Intermediation
Volume23
Issue number2
DOIs
Publication statusPublished - Apr 2014
Externally publishedYes

Keywords

  • Cross-listings
  • Investor interest
  • Investor protection

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