Download or read book Visibility Effects of Equity Cross-Listings written by Otto Randl and published by . This book was released on 2015 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper quantifies the visibility gained by companies cross-listing on foreign exchanges. Using an extensive data set on international equity cross-listings from 1986 to 1997 and analyst forecasts up to 1999, I analyze whether after cross-listings an increased number of brokerage firms follow a corporation's stock. I also explore changes in forecast precision and the degree of homogeneity within analyst forecasts subsequent to cross-listings. I find that cross-listing is generally a successful strategy if a firm wishes to increase visibility, as measrued by an increasing number of brokers following a firm and a higher total number of estimates. However, the higher number of analysts following a firm does not generally imply that the consensus forecast for firms with a cross-listing in the U.S. are significantly more precise than those for coparable firms without such a listing. This result could be due to the more stringent disclosure requirements in the U.S. compared to most European exchanges.