search query: @author Chemmanur, T.J. / total: 3
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| Author: | Chemmanur, T.J. Fulghieri, P. |
| Title: | Competition and cooperation among exchanges: a theory of cross-listing and endogenous listing standards |
| Journal: | Journal of Financial Economics
2006 : NOV, VOL. 82:2, p. 455-489 |
| Index terms: | co-operation investment |
| Freeterms: | cross-listing exchanges |
| Language: | eng |
| Abstract: | This study analyzes companies' choice to list equity and exchanges' choice of listing standards when insiders have private information about company value, but outsiders can produce (noisy) information at a cost. Exchanges are populated by two kinds of investors, whose numbers vary across exchanges: sophisticated (low information production cost) investors and ordinary (high-cost) investors. While companies are short-lived, exchanges are long-lived, value-maximized agents whose listing and disclosure standards evolve over time. The listing standards chosen by exchanges affect their "reputation", since outsiders can partially infer the rigor of these standards from the post-listing performance of companies. |
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