- private benefits of control •
- Corporate governance •
- Cross-listing •
- corporate ownership
This paper investigates how a foreign firm's decision to cross-list on a U.S. stock exchange is related to the consumption of private benefits of control by its controlling shareholders. Theory has proposed that when private benefits are high, controlling shareholders are less likely to choose to list their firm's shares in the U.S.
firms from 31 countries. In particular, the probability that a firm will cross-list on a U.S. exchange is inversely related to the control rights held by the controlling shareholder and to the difference
between the control rights and the cash flow rights owned by the controlling shareholder.