Stock price informativeness, cross-listings, and investment decisions

• 成果类型: Article
• 署名作者: Foucault, Thierry; Gehrig, Thomas
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; University of Freiburg
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2007.05.007
• 发表日期: 2008
• 页码: 146-168
• 关键词: cross-listings; cross-listing premium; Price informativeness; INVESTMENT

摘要

We show that a cross-listing enables firms to obtain, from the stock market, more precise information about the value of their growth opportunities. Thus, cross-listed firms make better investment decisions and trade at a premium. This theory of cross-listings implies that the sensitivity of investment to stock prices is larger for cross-listed firms. Moreover, the cross-listing premium is positively related to the size of growth opportunities and negatively related to the quality of managerial information. The sensitivity of the premium to the size of growth opportunities increases with factors that strengthen the impact of the cross-listing on price informativeness. (C) 2008 Elsevier B.V. All rights reserved.