Evolution of control of cross-listed companies

Abdallah, Wissam ORCID: https://orcid.org/0000-0001-6038-2387 and Goergen, Marc ORCID: https://orcid.org/0000-0003-4391-2651 2016. Evolution of control of cross-listed companies. European Journal of Finance 22 (15) , pp. 1507-1533. 10.1080/1351847X.2014.1003312

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Abstract

There are two theories on the determinants of the control structure of the firm. The first theory postulates that the control structure is determined by company-specific characteristics. The second theory emphasises the importance of institutional characteristics in shaping this structure. In this paper, we test the validity of both theories in the context of a cross-listing, which causes a change to the company's legal environment. We find that the initial control structure, risk and size determine the control structure post cross-listing and that cross-listing on better quality markets facilitates the evolution of control towards more dispersed control. To conclude, company characteristics have a greater impact than country characteristics on the company's decision to cross-list and are also better at explaining the change in the control structure post cross-listing.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance
Uncontrolled Keywords:	cross-listing, corporate governance, corporate control
Publisher:	Taylor & Francis
ISSN:	1351-847X
Date of First Compliant Deposit:	30 March 2016
Date of Acceptance:	23 December 2014
Last Modified:	26 Nov 2024 19:00
URI:	https://orca.cardiff.ac.uk/id/eprint/70823

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