On the Fortunes of Stock Exchanges and Their Reversals

As capital flows around the globe, it has become simpler for investors to buy securities in almost any of the world’s stock exchanges. This raises the question of why companies continue to seek secondary listings outside their home countries. Finance professors Nuno Fernandes and Mariassunta Giannetti undertook a broad study that offers some new insights into why and where firms cross-list their shares, and what roles governance rules and investor protection play in those choices. Their paper is rigorously academic in tone, and getAbstract recommends it to executives, regulators and policy makers with an advanced technical interest in the topic.