International Cross-Listing and Visibility

By H. Baker, John R. Nofsinger, D. Weaver. 2002

535 citations recorded by the source corpus.

This study shows that international firms listing their shares on the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE) experience a significant increase in visibility, as proxied by analyst coverage and print media attention (The Wall Street Journal or Financial Times). The increase in analyst following is also associated with a decrease in the cost of equity capital after the listing event in a way consistent with Merton's (1987) investor recognition hypothesis. Our results are stronger for NYSE listing firms than for LSE listing firms. This may partially compensate firms for the higher costs associated with NYSE listing (compared to LSE listing).

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/f99961056e1f93d06e5326ae0ada7803db426123

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Citations in the corpus

The colors of investors’ money: The role of institutional investors around the world (2008, unknown): “…in more detail by adding as an explanatory variable the number of analysts covering a firm (ANALYSTS), a proxy for the level of information available to investors (Baker, Nofsinger, and Weaver, 2002), and the percentage of foreign sales (FXSALES), which is a proxy for ‘‘name value’’ abroad.”
The Long-Term Effects of Cross-Listing, Investor Recognition, and Ownership Structure on Valuation (2006, background): “Singapore Management University Institutional Knowledge at Singapore Management University Research Collection School Of Accountancy School of Accountancy 6-2009 The long-term effects of cross-listing, investor recognition, and ownership structure on valuation Michael R. KING Bank of Canada Dan SEGA”
International Financial Integration Through Equity Markets: Which Firms from Which Countries Go Global? (2007, unknown): “5 See, for example, Baker et al. (1999), Chaplinsky and Ramchand (2000), Miller and Puthenpurackal (2002), Lins et al.”
Does International Cross-Listing Improve the Information Environment? (2008, unknown): “Baker, Nofsinger, and Weaver (2002) find increased visibility, as measured by analyst and media coverage, around the time of cross-listing.”
Has New York become less competitive than London in global markets? Evaluating foreign listing choices over time (2009, methodology): “Less is known about the attributes of firms that pursue UK listings (Baker, Nofsinger, and Weaver, 2002; Salva, 2003).”
Stock market liberalization and the information environment (2006, background): “Baker, Nofsinger, and Weaver (2002) report that analyst coverage and newspaper stories increase as a result of cross-listing in the U.S. or U.K. market.”
Political Relationships, Global Financing and Corporate Transparency: Evidence from Indonesia (2006, unknown): “Similarly, firms with foreign securities attract the attention of foreign analysts and the international business press (Baker et al., 2002; Lang et al., 2003).”
Information Costs and Home Bias: An Analysis of U.S. Holdings of Foreign Equities (2001, unknown): “Similarly, Baker, Nofsinger, and Weaver (2000) find a cross-listing on the NYSE is associated with increased analyst coverage and decreased cost of capital, and that these benefits are greater than for foreign firms that list on the London Stock Exchange, partially offsetting the higher costs…”
Does Religion Matter to Equity Pricing? (2012, unknown): “…no analyst coverage, low institutional investors’ ownership, and have low liquidity stocks listed on minor exchanges (e.g., Gompers and Metrick 2001; Baker et al. 2002; Mehran and Peristiani 2009).6 Baker et al. (2002) document a significant increase in a firm’s visibility when it cross-lists on a…”
Are There Permanent Valuation Gains to Overseas Listing? Evidence from Market Sequencing and Selection (2004, unknown): “Contrary to the arguments in Baker et al. (2002), Lang et al. (2003), Ahearne et al. (2001), we expect that overseas listings add very little in bringing a given firm or a country closer to the world capital market: listing benefits are significant only among firms and markets”
What Makes Stock Exchanges Succeed? Evidence from Cross-Listing Decisions (2001, background): “Baker et al. (1999) "nd that "rms cross-listing on the NYSE gain greater visibility than companies cross-listing on the LSE.”