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The Journal of Financial Research
de Tele′fonos de Chile(CTC)listed on the New York Stock Exchange(NYSE)in
1990 and was the first South American firm to do so in twenty-seven 代写留学生论文/留学生论文代写 https://www.51lunwen.org
years.2 Thelisting received considerable exposure and CTC officials began a“road show”tocanvass potential investors.To the extent that positive(negative)effects accrue torivals,the largest gains(losses)should be associated with the first listing from acountry.Because both positive and negative information effects may result fromlistings,the effect of listings with the strongest signals(i.e.,first listings from a
country)may be difficult to detect because of potentially offsetting effects.First Listing from Industry.To the extent that valuation effects accrue torivals because of industry information embedded in the listings,the effect shouldbe strongest for the first listing in an industry.However,because both positive andnegative valuation effects for industry rivals may result from the listing,the effect
of listings that convey the most information(i.e.,first listings from an industry)may be difficult to detect because of potentially offsetting effects.
IV.Sample Selection and Method
We use a sample of 269 foreign firms that listed on organized stock ex-
changes in the United States between 1970 and 1999.We obtain the sample ofcross-border stock listings from the NYSE’s Research Department and from theBank of New York.The sample includes listings on the NYSE,the American StockExchange(AMEX),and Nasdaq.Listings must meet the following criteria to qual-ify for inclusion in the sample:(a)the listing firm has at least one rival with thesame four-digit Standard Industrial Classification(SIC)code at the time of the list-ing,which has share price data available from the Center for Research in Security
Prices(CRSP);(b)the listing is a first-time listing in the United States and is nota switch from another exchange in the United States;and(c)the listing does notoccur on the same date as other listings in the industry.
Descriptive statistics for the sample of 269 cross-border listings are pre-sented in Table 1.Most of the listings originate in Europe and only a few listingsoriginate in the Middle East or Africa.Most of the listings occur in the 1990s andoriginate in developed countries.
The event study method is used to measure the average abnormal return
(AR)of rivals in response to the cross-border listings.A potential problem inidentifying the relevant event date is that the listing announcement often precedesthe actual listing.Although unambiguous announcement dates may be theoreticallysuperior to listing dates,they are not always available.Foerster and Karolyi(1999)
2
Crawford,L.,1990,Santiago’s high flyers turn to Wall Street,Financial Times(London),July 3,p.29.
Competitive and Information Ef fects 413information is conveyed by cross-border listings.The returns to U.S.rivals arelower when stock offerings are made in conjunction with the listing and are higherwhen the listing is the first from an industry.Thus,both competitive and informa-
tion effects are important in explaining the cross-sectional variation in the responseby U.S.rivals to cross-border listings.
ReferencesAlexander,F.,C.Eun,and S.Janakiramanan,1988,International listings and stock returns:Some empiricalevidence,Journal of Financial and Quantitative Analysis 23,135–52.Boubakri,N.and J.C