The Dual Listing Determinants of Firms from Integrated Markets: A Conceptual Perspective

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Awadh Saeed Bin-Dohry1 , Hanita Binti Kadirb2 , Sharmilawati Binti Sabkic3
1-3 School of Economics, Finance and Banking, Universiti Utara Malaysia
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ABSTRACT

This study aims to develop a conceptual framework of the determinants that encourage firms to have an additional listing. Particularly, this study highlights the global business strategy approach as an underpinning theory to explain the dual listing phenomenon, which considers listing abroad as a part of a firm’s international strategies that cover finance, operation, marketing, investment, ownership, and control. In order to evaluate these determinants, this study implies the gravity model and Generalized Method of Moments (GMM) model to assess the strength of the market integration, stock liquidity, stock volatility, ownership concentration, reputation, and geographic proximity in the dual listing decision. These models will provide a good explanation about the firms' preference to have additional listing inside or outside the ASEAN region. The examination of this study differs from previous studies that focus on the impact of dual listing as this study emphasizes on the motivations that encourage firms to have additional listings abroad. To sum up, the suggested framework and model would enable a better understanding of the motivations for firms to have foreign listing abroad and identify the most popular determinants that encourage firms to have an additional listing of firms from integrated ASEAN markets.

Keywords: Dual listing, Listing abroad, Market integration, Motivation