The Determinants of Multiple Foreign Listing Decision

This study aims to examine the determinants of multiple foreign listing decision. By implementing a multiple event-time experiment, we find no evidence to support the bonding hypothesis. Firms from developed countries prefer to list in proximate additional foreign markets (in geographic terms) to overcome market segmentation, and to benefit from better informational environment. The decision of multiple listing may be also related to the global business strategy of the firm. Firms from emerging countries, especially those with high quality, list in additional foreign market in order to overcome investment barriers. While liquidity and informational considerations play little role, culture proximity is a determining factor in the decision of multiple foreign listing for firms from emerging countries.