The Evidence and Impact of Financial Globalization

Chapter 11

International Cross-listings

L. Gagnon* and G.A. Karolyi^†

^*Queen’s University, Kingston, ON, Canada

^†Cornell University, Ithaca, NY, USA

Outline

Introduction

Some New (and Old) Wisdom on International Cross-listings

The Current State of the World Market for International Cross-listings

Price Discovery, Multi-market Trading, and Arbitrage

The Dynamics of Multi-market Trading

Concluding Remarks

Acknowledgments

References

With the rapid globalization of financial markets during the 1980s and 1990s, increasingly more firms from around the world began cross-listing their shares on major overseas stock exchanges. During the past decade, however, the number of new international cross-listings on major exchanges around the world has slowed, ...