Evaluation of cross-listing influence on the market value of russian companies

Abstract

Angelina Vasilievna Yavorskaya

The article investigates the influence of cross-listing (depositary receipts issue) on the market value of russian companies. The article contains the recent dynamics description, the literature review is given, and event-study algorithm is described.  We analyze 34 russian companies which issued depositary receipts during the period 1996 - 2012. The result is that cumulated average abnormal return is positive on the event window [-10; 10] days. Thus, the market evaluates the event positively, the market value of a company increases after the cross-listing abroad.