Relative industry valuation and cross-border listing

摘要

Using a sample of firms from 40 countries cross-listed in the U.S. during the 1982-2018 period, we find that the discrepancy between a firm's home industry valuation and its corresponding U.S. industry valuation-the relative industry valuation-is an important factor in the listing decision and valuation after listing. International firms whose home market industries are undervalued relative to the corresponding U.S. industries are more likely to cross-list. They also enjoy permanent valuation gains after listing. These firms issue more equity, invest more, and realize higher growth rates. (C) 2020 Elsevier B.V. All rights reserved.