Abstract
PurposeThe primary aim of this field research study is to fill the void about the long-run performance of the crosslisting event of companies listed on NYSE-Euronext Paris.Design/methodology/approachOur sample consisted of an overall sample of 138 listed companies officially listed on the French Stock Exchange over the period 1994–2019 using three empirical methods, including the Time Abnormal Return (CTAR) calendar, the three-factor model of Fama and French (1993), and the method of Fama and Macbeth (1973).FindingsWe find significant long-term underperformance. Over the long term, the returns of cross-listed companies are lower than the returns of control companies. Also, we find that cross-listed companies' performance deteriorates over the long term.Research limitations/implicationsThis study can help investors and financial analysts make informed decisions about the timing and effectiveness of investment strategies. In addition, it contributes to academic research to assess the efficiency of capital markets and provide evidence on the effectiveness of market regulations.Originality/valueThis study differs from previous studies in terms of applying a variety of different statistical methods to test the existence of abnormal long-term performance after the crosslisting announcement and the first study that analyses the long-term performance of cross-listed firms in the French context.
Published Version
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