Key determinants of cross-listing in Sub-Saharan Africa

Abstract

We examine the determinants of cross-listing using 780 companies listed on 7 stock exchanges in Sub-Saharan Africa (SSA). We employ survival analysis also known as failure time analysis as our analytical framework. We show that firms prefer to list in additional equity markets that are geographically closer to their home countries. We also show that the business strategy of a firm influences its decision to list in foreign markets in SSA. We document that the prospect of market liquidity drives the cross-listing decision in the sub-region.

Keywords:

• Cross-listing
• stock markets
• survival analysis and Sub-Saharan Africa
• market integration

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 The United States of America

2 The United Kingdom

Additional information

Notes on contributors

Lawrence Madewe Atuna

Lawrence Madewe Atuna is a lecturer in the Department of Banking and Finance at the University for Development Studies, Tamale. His area of research includes; Capital Market Development, Private Capital Flows and Energy Finance in emerging and Frontier Markets.

Michael Adusei

Michael Adusei is a senior lecturer at the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology, Kumasi. His research publications have appeared in ranked international journals including Journal of Institutional Economics; International Journal of Finance and Economics; Quarterly Review of Economics and Finance; International Review of Economics and Finance; and Managerial and Decision Economics.