Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5092897 | Journal of Contemporary Accounting & Economics | 2013 | 19 Pages |
Abstract
This study examines the mechanisms through which companies domiciled within the Commonwealth of Independent States (CIS) overcome market segmentation barriers which are the legacy of the Soviet Union. In contrast to a conventional cross-listing mechanism, leading CIS firms pursue reverse cross-listing or single-listing strategies, selecting the London Stock Exchange (LSE) as their main or only capital-raising platform. This study documents short-term IPO underperformance for single-LSE and dual-listed firms, suggesting that listing in London is risky, and that firms should consider alternative capital-raising strategies. Recent national regulatory reforms, which are expected to both improve capital market conditions and to encourage firms to list domestically, present CIS firms with such an opportunity. Finally, this study shows that CIS blue chips outperform the UK market in the long-run. This effect is more pronounced for dual-listed firms that also outperform the Russian market.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business, Management and Accounting (General)
Authors
Oksana Kim,