THE EFFECT OF CROSS LISTING: EVIDENCE FROM THE AUSTRALIAN MARKET

This study investigates the effects of cross listing activities for Australian listed companies In particular. an analysis is made of the financial characteristics of cross-listed companies. and the companies' choice of foreign stock markets. We also conduct a joint test of the investor awareness. market segmentation. signalling. liquidity and shareholder base hypotheses by examining company post foreign list ing price performance The results of this study exhibit four main conclusions First. cross listed companies are on average larger and more profitable than their non-cross listing counterparts. Secondly. Australian companies in general are less likely to cross list on a foreign market whose regulation is more rigorous than the domicile market. Thirdly. cross listing companies' short-term post foreign listing share is generally significantly positive. Finally, cross listing tend1 to decrease the systematic risk of a firm.