<p> CROSS-LISTING, FIRM CHARACTERISTICS AND THE LEGAL PROTECTION OF SHAREHOLDERS</p><p>K. G. Viswanathan, Hofstra University, Hempstead, NY 11550, USA Tel. No. (516) 463-5355 E-Mail: [email protected]</p><p>Edward Zychowicz, Hofstra University, Hempstead, NY 11550, USA Tel. No. (516) 463-5784 E-Mail: [email protected]</p><p>Wi Saeng Kim, Hofstra University, Hempstead, NY 11550, USA Tel. No. (516) 463-5354 E-Mail: [email protected]</p><p>ABSTRACT</p><p>This paper examines a number of firm-specific factors that may determine the decision made by foreign firms to list in the U.S. markets. In addition, the paper attempts to assess whether the quality of country legal systems and economic openness are relevant factors in explaining the cross-listing decision. A sample of foreign firms that cross-listed on U.S. exchanges, and a control sample of similar foreign firms that did not cross list are analyzed using univariate and multivariate tests. High growth in assets and sales, relatively large size of firms, and substantial investment in foreign markets are important factors in foreign firms deciding to cross list on U.S. exchanges. Country legal systems and economic openness are not found to be significant determinants of cross-listing.</p>