London - New York cross-listings, a study
Today’s Wall Street Journal (subscription required) refers to a study, published earlier this month, on cross-listings on the New York and London stock exchanges. The name of the paper (not mentioned in the article) is Has New York Become Less Competitive in Global Markets? Evaluating Foreign Listing Choices over Time.
From the paper’s abstract:
We find that cross-listings have been falling on U.S. exchanges as well as on the Main Market in London. This decline in cross-listings is explained by changes in firm characteristics rather than by changes in the benefits of cross-listings. […] Our evidence is consistent with the theory that an exchange listing in New York has unique governance benefits for foreign firms. These benefits have not been seriously eroded by SOX and cannot be replicated through a London listing.
Previous research papers by the three authors - Craig Doidge, G. Andrew Karolyi and René M. Stulz, all professors and according to the article ‘authorities on foreign-company listing decisions’ - include Why Do Countries Matter so Much for Corporate Governance? (abstract) and Why are foreign firms listed in the U.S. worth more? (paper).