Economic studies have found that international cross-listing of securities across financial markets resulted in ________ abnormal returns that were ________ for firms resident in emerging markets with a low level of legal barriers to capital flows than for firms resident in developed countries.

Question

Quizplus · Accepted Answer

Economic studies have shown that cross-listing of securities leads to positive abnormal returns, which are greater for firms resident in emerging markets with a low level of legal barriers to capital flows. This is because such firms are likely to benefit more from increased investor visibility and improved access to capital that cross-listing provides.

Economic Studies Have Found That International Cross-Listing of Securities Across