Stock Price Informativeness , Cross-Listings and Investment Decisions 1

@inproceedings{Foucault2006StockPI,
  title={Stock Price Informativeness , Cross-Listings and Investment Decisions 1},
  author={Thierry Foucault},
  year={2006}
}
Stock Price Informativeness, Cross-Listings and Investment Decisions We show that a cross-listing allows a …rm to make better investment decisions because it enhances stock price informativeness. This theory of cross-listings yield several predictions. In particular, it implies that the sensitivity of investment to stock prices should be larger for cross-listed …rms. Moreover, the increase in value generated by a cross-listing (the “cross-listing premium”) should be positively related to the… CONTINUE READING
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