The long- and short-run financial impacts of cross listing on Australian firms

Yen Hou Ng, Hue Hwa Au Yong, Robert Faff

    Research output: Contribution to journalArticleResearchpeer-review

    5 Citations (Scopus)

    Abstract

    This paper investigates the short-run and long-run performance of Australian cross-listed firms relative to their industry rivals. The role of share trading liquidity and firm visibility in explaining abnormal returns is also investigated. In the short run, an abnormal return of 1.91 for cross-listed firms is found at announcement, while no significant abnormal returns is found for rivals on the event day. For the long-run analysis, only rival firms (especially for rivals of the non-market leaders) experience significant abnormal returns, which are negative. Cross listing into NEW ZEALAND and other countries induces a more negative impact on rivals than the UK. Lastly, liquidity is found to be a determinant of the short- and long-run abnormal returns.
    Original languageEnglish
    Pages (from-to)81 - 98
    Number of pages18
    JournalAustralian Journal of Management
    Volume38
    Issue number1
    DOIs
    Publication statusPublished - 2013

    Cite this

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    abstract = "This paper investigates the short-run and long-run performance of Australian cross-listed firms relative to their industry rivals. The role of share trading liquidity and firm visibility in explaining abnormal returns is also investigated. In the short run, an abnormal return of 1.91 for cross-listed firms is found at announcement, while no significant abnormal returns is found for rivals on the event day. For the long-run analysis, only rival firms (especially for rivals of the non-market leaders) experience significant abnormal returns, which are negative. Cross listing into NEW ZEALAND and other countries induces a more negative impact on rivals than the UK. Lastly, liquidity is found to be a determinant of the short- and long-run abnormal returns.",
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    The long- and short-run financial impacts of cross listing on Australian firms. / Ng, Yen Hou; Au Yong, Hue Hwa; Faff, Robert.

    In: Australian Journal of Management, Vol. 38, No. 1, 2013, p. 81 - 98.

    Research output: Contribution to journalArticleResearchpeer-review

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