@article{d4634e5ed90f46d08fba6853ac9aee67,
title = "Cross-listings, antitakeover defenses, and the insulation hypothesis",
abstract = "This paper tests a theory conjecturing that cross-listing can insulate firms from potential hostile takeovers owing to the increased cost concern of bidders. We find a significant and positive relation between the corporate control threat and the likelihood that firms cross-list in a foreign country. Firms facing takeover threats are more likely to choose hosting countries with greater accounting differences from the US GAAP. Subsample evidence suggests that cross-listing is more likely to be used as an antitakeover device if firms have foreign market exposure or when all-cash offers are less likely. Tests based on quasi-natural experiments provide further support.",
keywords = "Cross-listing, Poison pills, Takeover deterrent",
author = "Albert Tsang and Nan Yang and Lingyi Zheng",
note = "Funding Information: We thank Bill Schwert (the editor) and an anonymous referee for constructive and insightful comments and suggestions that have significantly improved the paper. We thank Yuan Tao (discussant), Agnes Cheng, Ji-Chai Lin, Jeffery Ng, Qiang Wu, and other seminar participants at The Hong Kong Polytechnic University and Southwestern University of Finance and Economics for their many helpful comments and suggestions. We thank James Nordlund for providing the bootstrapping code. We are grateful for financial support from the Faculty of Business at The Hong Kong Polytechnic University. Funding Information: We thank Bill Schwert (the editor) and an anonymous referee for constructive and insightful comments and suggestions that have significantly improved the paper. We thank Yuan Tao (discussant), Agnes Cheng, Ji-Chai Lin, Jeffery Ng, Qiang Wu, and other seminar participants at The Hong Kong Polytechnic University and Southwestern University of Finance and Economics for their many helpful comments and suggestions. We thank James Nordlund for providing the bootstrapping code. We are grateful for financial support from the Faculty of Business at The Hong Kong Polytechnic University. Publisher Copyright: {\textcopyright} 2021",
year = "2022",
month = jul,
doi = "10.1016/j.jfineco.2021.08.003",
language = "English",
volume = "145",
pages = "259--276",
journal = "Journal of Financial Economics",
issn = "0304-405X",
publisher = "Elsevier B.V.",
number = "1",
}