Competition of trading volume among markets: Evidence from stocks with multiple cross-listing destinations

• We construct a comprehensive dataset of cross-listings with multiple host markets.
• Our sample includes 304 equity issues that are cross-listed on multiple host markets.
• We examine the dynamics of competition for order flows among rival host markets.
• We document the significance of various market- and firm-level variables.
• Information-based variables have minimal impact on the distribution of order flows.

In constructing a comprehensive dataset of firms simultaneously cross-listed on multiple foreign markets between 1990 and 2012, we document the cross-sectional and chronological distribution of the trading volume of global cross-listings and examine the dynamics of competition for order flows among rival host markets. Our sample includes a total of 1118 cross-listings. Among them, 304 equity issues are cross-listed on multiple host markets. We find that host markets are more successful in attracting order flows from rival hosts markets when they have lower trading cost, better legal protection for investors, higher market liquidity, more advanced financial development, English common law origin, and firms with longer listing history. Surprisingly, information-based variables such as information factor and time zone difference have minimal impact on the distribution of order flows.