Stock exchanges around the world compete to list firms. An important feature of international securities markets is the phenomenon of “cross-listings.” In a cross-listing, a firm lists its shares for trading on more than one stock exchange. Typically, a cross-listed firm will list both on its domestic stock exchange and on one or more foreign exchanges but that need not be the case. The Chinese tech giant Baidu is listed on NASDAQ in the United States, but also later listed in Hong Kong. Cross-listing involves important economic dynamics. Stock exchanges compete along various dimensions, including governance and market structure, to attract listings.
Corporations may seek optimal regulatory environments as well as to signal quality governance through their listing decisions. This course will examine the legal and regulatory processes involved in cross-listings, the empirical debates involving them, and the impact of cross-listings on international corporate governance.