The cross-listing decision and the home bias in international equity investments

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aut.conference.typeOral Presentation - Paper Presentation
aut.researcherDodd, Olga
dc.contributor.authorDodd, O
dc.contributor.authorFrijns, B
dc.date.accessioned2014-02-18T00:59:56Z
dc.date.accessioned2014-02-19T00:25:51Z
dc.date.available2014-02-18T00:59:56Z
dc.date.available2014-02-19T00:25:51Z
dc.date.copyright2013-12-11
dc.date.issued2013-12-11
dc.description.abstractThis paper examines the relationship between the choice of the destination market for cross-listing and the home bias of investors. We use two measures of home bias, the domestic bias (the degree of overinvestment in the home market), and the foreign bias (the degree of over-/under-investment in a foreign market). First, we find a strong relationship between the domestic bias of investors and cross-listing decisions of firms. In particular, the level of cross-listing activity of firms from a particular market is negatively related to the domestic bias of the home market investors, while the level of cross-listing activity of firms towards a particular market is negatively related to the domestic bias of the host market investors. Second, we find a strong relationship between the foreign bias and cross-listings. In particular, the level of cross-listing activity from one market to another is positively related to the foreign bias in investments allocation of the home market investors as well as of the host market investors. Overall, these results suggest that corporate managers, when making a cross-listing decision, may be prone to the same behavioral/familiarity bias as investors.
dc.identifier.citationThe First International Conference on Finance and Banking held at Inna Grand Bali Beach Hotel, Sanur, Bali, Indonesia, 2013-12-11 to 2013-12-12
dc.identifier.urihttps://hdl.handle.net/10292/6839
dc.publisherThe Indonesian Financial Management Association (IFMA)
dc.relation.replaceshttp://hdl.handle.net/10292/6820
dc.relation.replaces10292/6820
dc.relation.urihttp://www.ifma-online.org/programs/
dc.rightsAuckland University of Technology (AUT) encourages public access to AUT information and supports the legal use of copyright material in accordance with the Copyright Act 1994 (the Act) and the Privacy Act 1993. Unless otherwise stated, copyright material contained on this site may be in the intellectual property of AUT, a member of staff or third parties. Any commercial exploitation of this material is expressly prohibited without the written permission of the owner.
dc.rights.accessrightsOpenAccess
dc.subjectCross-listing
dc.subjectHome bias
dc.subjectDomestic bias
dc.subjectForeign bias
dc.subjectFamiliarity bias
dc.titleThe cross-listing decision and the home bias in international equity investments
dc.typeConference Contribution
pubs.elements-id160823
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Business & Law
pubs.organisational-data/AUT/Business & Law/Finance
pubs.organisational-data/AUT/Business & Law/Finance/Finance PBRF 2012
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