Destination choice of the dual listing decision: The case ASEAN-5 firms

Figures & data

Table 1. Explanatory variable measures

	The variable	Measure	Variable used by
Dependent variable
Des_choice	Destination Choice	A dummy dependent variable equals one if firms have a dual listing in Europe and equal to zero otherwise.	(Bianconi & Tan, 2010; Mu, 2014)
Independent variables
TR	Trade openness.	Home country imports plus exports divided by its GDP.	(Boubakri et al., 2016; Cavoli et al., 2011).
FDI	FDI openness.	Inward FDI scaled by GDP.	(Boubakri et al., 2016; Cavoli et al., 2011).
Stock illiquidity	Amihud’s Illiquidity.	The daily ratio of absolute stock return to its dollar volume.	(Al-Jaifi, 2017; Amer Al-Jaifi et al., 2017; Amihud, 2002; Bahlous, 2013; Banti et al., 2017).
Volatility.	Stock Volatility.	The standard deviation of the daily closing returns.	(Al-Jaifi, 2017; Amer Al-Jaifi et al., 2017; Pagano et al., 2002; Prommin et al., 2014).
Ow_Con	Ownership Concentration.	The ratio of total outstanding shares held by the top three shareholders.	(Al-Jaifi, 2017; Amer Al-Jaifi et al., 2017; Udomsirikul et al., 2011).
Reputation.	Reputation.	Ordinary shares owned by foreigners divided by total shares outstanding.	(Boshnak, 2017; Dhouibi & Mamoghli, 2013).

Table 2. The frequency of the sample depends on the destination choice

Des_choice	Freq.	Percent	Cum.
0 = US	111	20.71	20.71
1= Europe	425	79.29	100
Total	536	100

Table 3. Descriptive statistics for sample data

Variable	Obs	Mean	Std. Dev.	Min	Max
Des_choice	536	0.7929	0.4056	0	1
TR	536	2.0827	1.5328	0.3742	4.3733
FDI	536	0.0933	0.0954	0.0006	0.2802
Illiquidity	497	0.0008	0.0022	0	0.0093
Volatility	535	0.4817	0.2955	0.1165	1.8843
Ow_con	482	0.4611	0.2881	0	0.9992
Reputation	467	0.1772	0.2342	0	0.9577

Notes: Des_choice = Destination choice is a dummy dependent variable equal to one if firms have a dual listing in Europe and equal to zero otherwise, TR = trade openness, FDI = foreign direct investment openness, Illiquidity = the liquidity measure as used by Amihud (2002), Volatility = stock volatility, Ow_Con = Ownership concentration measured by the percentage of outstanding shares owned by top three shareholders, Reputation = firms reputation measure as the outstanding shares owned by foreign investors.

Table 4. The mean of the sample based on country of origin/home country

	Indonesia	Malaysia	Philippines	Singapore	Thailand
	mean
Des_choice	0.9634	0.0000	0.0000	0.8451	0.9158
TR	0.5126	1.5510	0.6594	3.9060	1.3448
FDI	0.0200	0.0321	0.0153	0.1989	0.0296
Illiquidity	0.0009	0.0003	0.0003	0.0013	0.0000
Volatility	0.5446	0.2665	0.3846	0.5316	0.3693
ow_con	0.5527	0.5694	0.4625	0.5376	0.0586
Reputation	0.2175	0.1792	0.1725	0.2044	0.0447

Notes: Des_choice = Destination choice is a dummy dependent variable equal to one if firms have a dual listing in Europe and equal to zero otherwise, TR = trade openness, FDI = foreign direct investment openness, Illiquidity = the liquidity measure as used by Amihud (2002), Volatility = stock volatility, Ow_Con = Ownership concentration measured by the percentage of outstanding shares owned by top three shareholders, Reputation = firms reputation measure as the outstanding shares owned by foreign investors.

Table 5. Distribution of firms based on destination and sectors

	Basic Materials	Consumer Discretionary	Consumer Staples	Energy	Financials	Health Care	Industrial	Real Estate	Technology	Telecommun-ications	Utilities	total by destination
Europe	39	59	47	42	45	11	92	44	12	23	11	425
US	5	19	12	6	13	4	18	16	1	9	8	111
total by sector	44	78	59	48	58	15	110	60	13	32	19	536

Table 6. Distribution of firms based on home country and sectors

	Basic Materials	Consumer Discretionary	Consumer Staples	Energy	Financials	Health Care	Industrial	Real Estate	Technology	Telecomm-unications	Utilities	total by country
Indonesia	16	22	25	20	24	5	25	14	2	9	2	164
Malaysia	1	5	3	4	6	1	4	2	1	4	3	34
Philippines	3	5	4	1	4		4	3		2	4	30
Singapore	18	28	21	16	10	6	62	32	5	7	8	213
Thailand	6	18	6	7	14	3	15	9	5	10	2	95
total by sector	44	78	59	48	58	15	110	60	13	32	19	536

Table 7. Firm distribution depends on home country and host destination

Destination Country of origin	Europe	US	Total by country
Indonesia	158	6	164
Malaysia	0	34	34
Philippines	0	30	30
Singapore	180	33	213
Thailand	87	8	95
Total by Destination	425	111	536

Table 8. VIF for the binomial logit model

Variable	VIF	1/VIF
TR	3.72	0.2691
FDI	3.71	0.2696
Illiquidity	1.31	0.7657
Volatility	1.28	0.7805
Ow_Con	1.23	0.8160
Reputation	1.17	0.8543
Mean VIF	2.07

*Notes: TR = trade openness, FDI = foreign direct investment openness, Illiquidity = the liquidity measure as used by Amihud (2002), Volatility = stock volatility, Ow_Con = Ownership concentration measured by the percentage of outstanding shares owned by top three shareholders, Reputation = firms reputation measure as the outstanding shares owned by foreign investors.

Table 9. Correlation coefficients among variables

	TR	FDI	ILLIQ.	VOL.	OC	Rep.
TR	1
FDI	0.8648***	1
Illiquidity	0.1580***	0.0547	1
Volatility	0.1093**	0.0497	0.3998***	1
Ow_Con	0.1239***	0.1393***	0.2290***	0.1375***	1
Reputation	0.0351	0.0627	0.1214**	0.0474	0.3621***	1

Notes: TR = trade openness, FDI = foreign direct investment openness, Illiquidity = the liquidity measure as used by Amihud (2002), Volatility = stock volatility, Ow_Con = Ownership concentration measured by the percentage of outstanding shares owned by top three shareholders, Reputation = firms reputation measure as the outstanding shares owned by foreign investors. *Significant at p<0.10, **significant at p<0.05, ***significant at p<0.01.

Table 10. Tests for goodness of fit (binomial model)

Tests	Results	P-value
Likelihood Ratio	119.42	0.0000
Wald chi-square test	29.44	0.0001
Hosmer-Lemeshow		0.2706

Table 11. Model specification test (linktest)

Test	P-value
Linktest
_hat	0.0000
_hatsq	0.2320

Table 12. Logistic regression model

Des_choice	Model 1		Model 2
	Coef.	P>|z|	Coef.	Std. Err.		odds	P>|z|
TR	−0.7496	0.0010	−0.7384	0.2411		0.4779	0.0020
FDI	15.9859	0.0000	16.0209	4.0723		9073554	0.0000
Illiquidity	−30.1266	0.7030	−37.4924			0.0000	0.6430
Volatility	3.1509	0.0000	3.0147	0.8595		20.3834	0.0000
Ow_con	−1.1447	0.0330	−1.1293	0.5660		0.3233	0.0460
Reputation	−0.2596	0.6760	−0.3438	0.6441		0.7091	0.5930
Year dummy	Included	Included
Industry dummy	NO	Included
_cons	−3.2381	0.0060	−2.4448	1.3684		0.0867	0.0740
Pseudo R^2	0.2448		0.2627

Note: Des_choice = Destination choice is a dummy dependent variable equal to one if firms have a dual listing in Europe and equal to zero otherwise, TR = trade openness, FDI = foreign direct investment openness, Illiquidity = the liquidity measure as used by Amihud (2002), Volatility = stock volatility, Ow_Con = Ownership concentration measured by the percentage of outstanding shares owned by top three shareholders, Reputation = firms reputation measure as the outstanding shares owned by foreign investors. *Significant at p<0.10, **significant at p<0.05, ***significant at p<0.01.

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