@article{TheLong-TermEffectsofCross-Listing:1394,
      recid = {1394},
      author = {King, Michael R. and Segal, Dan},
      title = {The Long-Term Effects of Cross-Listing, Investor  Recognition, and Ownership Structure on Valuation},
      publisher = {Bank of Canada},
      address = {2006},
      pages = {1 online resource (v, 37 pages)},
      abstract = {The authors show that the widening of a foreign firm's  U.S. investor base and the improved information environment  associated with cross-listing on a U.S. exchange each have  a separately identifiable effect on a firm's valuation. The  increase in valuation associated with cross-listing is  transitory, not permanent. Valuations of Canadian firms  peak in the year of cross-listing and fall monotonically  thereafter, regardless of the level of U.S. investor  holdings or the ownership structure of the firm.  Cross-listed firms with a 20 per cent or more blockholder  attract a similar number of U.S. institutional investors as  widely held firms, on average, but experience a lower  increase in valuation at high levels of investor  recognition. While U.S. investors are less willing to  invest in firms with dual-class shares, these firms benefit  more from cross-listing even when they fail to widen their  U.S. investor base, suggesting that the reduction in  information asymmetry between controlling and minority  investors has a separate impact on valuation for firms  where agency problems are greatest.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1394},
      doi = {https://doi.org/10.34989/swp-2006-44},
}