VALUATION EFFECTS OF INTERNATIONAL STOCK-EXCHANGE LISTINGS

A comprehensive data set consisting of 346 U.S. firm stock listings on ten different stock exchanges is examined in order to determine the v aluation consequences of listing on a foreign stock exchange. For the sample of U.S. firms listing abroad, abnormal returns in U.S. trading were: (1) positive around the date of acceptance on the foreign exchan ge; (2) negative on the first trading day; and (3) negative in the pos t-listing period for firms listing on the Tokyo and Basel exchanges. T ests for the equality of stock return variances between event periods and market model estimation periods failed to reveal a definitive impa ct.