Title: Performance implications of cross-listing for emerging vs. developed market firms: an institutional legitimacy approach

Authors: Sudhir Nair; Bruce C. Skaggs

Addresses: Peter B. Gustavson School of Business, University of Victoria, P.O. Box 1700 STN CSC, Victoria, BC, V8W 2Y2, Canada ' Department of Management, Eugene M. Isenberg School of Management, University of Massachusetts Amherst, 121 Presidents Drive, Amherst, MA 01003, USA

Abstract: Scholars suggest that cross-listing can enhance a firm's legitimacy. However, the performance implications of legitimacy derived from cross-listing have not been deeply examined. Our paper addresses this gap by analysing two sets of firms: one from a developed country and another from an emerging market. Using an institutional legitimacy perspective, we examine the secondary impact of cross-listing on firm performance of 362 firms that have differential needs for legitimacy. Our longitudinal analysis suggests that the impact of legitimacy is non-linear and that the legitimacy effect on performance for emerging market firms is significantly more than that for developed market firms.

Keywords: cross-listing; institutional legitimacy; emerging markets; developed markets; isomorphism; firm performance.

DOI: 10.1504/IJBEM.2012.047780

International Journal of Business and Emerging Markets, 2012 Vol.4 No.3, pp.223 - 240

Received: 22 Feb 2011
Accepted: 23 Aug 2011

Published online: 15 Nov 2014 *

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