The number of Irish firms cross-listed on international exchanges remains low,
relative to other countries. However, as a proportion of those firms eligible to
list, Irish firms are, relative to others, more likely to list abroad. Surprisingly,
Doidge, Karolyi and Stulz (2004) show that in 1997 US exchange-traded Irish
firms are worth less than domestic Irish firms, a result at odds with what we
might have expected and with the predictions of the legal bonding hypothesis.
In this paper, I show that listing abroad, in both London (AIM listing only)
and the US (both Level 1 and Level 2), does enhance the value of lrish firms. I
find that cross-listing leads to an average 'within-firm' change in the value of
Level 2 firms in the region of 19.65 per cent (using market-to-book of assets).
As expected, the change in value experienced by Level 1 firms is smaller (14.93
per cent). Like Doidge, Karolyi and Stulz (2009), 1 do not find that an ordinary
listing in London enhances valu...