The overseas listing decision: New evidence of proximity preference

• 成果类型: Article
• 署名作者: Sarkissian, S; Schill, MJ
• 署名单位: McGill University; University of Virginia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhg048
• 发表日期: 2004
• 页码: 769
• 关键词: INTERNATIONAL CROSS-LISTINGS; HOME BIAS; MARKET-SEGMENTATION; stock returns; INFORMATION; CHOICE; IMPACT; integration; INVESTMENT; OWNERSHIP

摘要

Using a cross section of effectively the entire universe of overseas listings across world markets, we examine the market preferences of firms listing their stock abroad. We find that geographic, economic, cultural, and industrial proximity play the dominant role in the choice of overseas listing venue. Contrary to the notion that firms maximize international portfolio diversification gains in listing abroad, cross-listing activity is more common across markets for which diversification gains are relatively low. Our findings imply that the same proximity constraints that are believed to lead to home bias in investment portfolio decisions also exert a profound influence on financing decisions.