The Overseas Listing Decision: New Evidence of Proximity Preference
Year: 2003
Type: article
Abstract: 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.
Source: Review of Financial Studies
DOI: 10.1093/rfs/hhg048
Authors: Sergei Sarkissian, Michael J. Schill
Institutions: McGill University, University of Virginia
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3124296977