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Cross Listing - Literature review Example
Throughout the above discussion, the researcher has tried to understand the reasons, benefits and cost of cross listing for firms. The researcher found, in most of the cases, reasons behind cross listing can also serve as its empirical benefits. …
The researcher will take the help of the research work of previous research scholars in order to shed light on the topic. 1.2 Definition of Cross Listing Karolyi (2012) defined cross-listing or “dual-listing’ as the strategic measure taken by companies to list its equities in exchange of foreign countries and the process may or may not involve secondary or initial capital rising. The scholar has also pointed out that cross-listing involves customization or changing the disclosure measure, transparency, corporate governance requirement in accordance with nature of the business environment of the foreign country where equities are going to be listed. Jian et al. (2011) also pointed out that cross-listing is basically a strategic choice rather being a mere accounting trick performed by top level management of the firm to internationalize its business without involving any traditional international expansion policy such as merger & acquisition, exporting, licensing etc. In such context, Karolyi (2012) and Jian et al. (2011) agreed with the fact that cross-listing requires involvement of multiple capital market participants such as accountants, investment banks, custodian agency which undertakes clearance and settlement activities, strategic advisors etc. Hence it can be assumed that cross-listing is a lengthy and complex process. ...