Friday, 12 June 2020 06:43

The Effects of Regional Cross Listing on Firm Value and Financial Performance: Drawing Lessons for Lesotho

Written by
Rate this item
(0 votes)

THIS RESEARCH determines the effects of regional cross listing on firm value and financial performance and draws policy lessons for Lesotho. Using event study methodology, financial ratio analysis and a regional case study of two Sub-Saharan African firms that cross listed on the Johannesburg Stock Exchange in 2015 and 2016, the results of the study reveal that cross listing leads to increased firm liquidity coupled with positive and statistically significant abnormal returns. These findings confirm the legal bonding theory, the signalling theory, the investor recognition  theory and the liquidity theory. It is recommended that the empirical findings of this study be used by authorities to draw locally incorporated firms’ attention to the potential benefits of cross listing.  This should be done in conjunction with initiatives that identify and unlock any bottlenecks that act as deterrents for company listing on the Maseru Securities Market.

Read 590 times Last modified on Wednesday, 17 June 2020 13:06

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.