The Determinants of Dual Listing Decision of Firms From Asean-5 Countries

Research on the determinants of dual listing, particularly for firms from ASEAN-5 countries, is still limited. The contradictory expectations between market integration and segmentation theories raise the need for more examination regarding dual listing. Therefore, this study aims to examine the determinants of dual listing by employing ordinary least squares regression. It also investigates destination choice decisions, and the gains firms realised in the post-dual listing period by using logistic regression. The study sample consists of firms with a dual listing from ASEAN-5 countries for the period of 2003 to 2017. The findings revealed a significant positive relationship between trade openness and dual listing decisions among firms from ASEAN-5 countries. Similarly, the finding shows that the intra-ASEAN exports, and intra- ASEAN FDI inflows and outflows play an important role in the decisions on dual listing. Moreover, firms which pursue dual listing come from countries with low market capitalisation and high Gross Domestic Production (GDP). The destination choice decision examination showed that the higher the home country trade openness and the firms’ ownership concentration, the lower the firms' preference to pursue dual listing within European markets. Meanwhile, higher home country FDI openness and the firms’ stock volatility indicate a high tendency for firms to seek dual listing within European markets. Finally, the evidence regarding the changes in firms’ experiences after listing abroad shows that the firms experience a reduction in illiquidity and stock volatility after dual listing. In addition, ownership concentration, reputation and firm size showed an increase in the post-dual listing. The study contributes to the stakeholder new insight into the determinants that enhance the firm’s opportunity to seek dual listing, destination choice decision and firms’ realised gain after listing abroad.