Why cross boarder listing does not add any value to a firm?
currently the market (investors) does not invest in companies that don't have the same filing requirements that many U.S firms have.
U.S firms must follow GAAP (generally accepted accounting principals) and file quarterly. Many firms in other countries do not have to follow certain rules and so it makes trusting their financial reports hard.
The cross border listing doesn't add value to the firm is because there is a common belief that a large number of investors won't invest in a foreign company that does not do business in the country that the firm is cross listed in
ex: Americans don't know anything about a soda that only sells in Pakistan. How do I know if Pakistanis even like the soda?
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