Does Corporate Control Determine the Cross-listing Location?

This paper explains the choice between cross-listing in the common law system versus the civil law system. We find that firms with more concentrated control, with a higher level of risk and those with more pronounced financing needs are more likely to cross-list on a common law market. In addition, firms from countries with better accounting standards are also more likely to cross-list in a common law country. However, we do not find support for the bonding hypothesis and the hypothesis stating that shareholders with more private benefits of control are less likely to list their firm on a common law stock exchange.