Foreign listings, firm value, and volatility: The case of Japanese firms' listings on the US stock markets

The purpose of this study is to analyze the effects of Japanese firms' listings on the U.S. stock markets in terms of price change and volatility. The event study method is used to examine bow foreign listing affects the value of 24 Japanese firms listed on the New York Stock Exchange and over-the-counter market. In addition, the relationship between listing and abnormal return volatility is analyzed using the GARCH model. The empirical results indicate the following: First, the Japanese firms' listings on the U.S. markets show positive, but statistically insignificant abnormal returns. Second, U.S. market listing has no significant effects on stock prices. Third, an abnormal return pattern shows no significant movement around the foreign listing date. Finally, the valuation effects of listing on the New York Stock Exchange tend to be similar to those from the over-the-counter market.