Destination choice of the dual listing decision: The case ASEAN-5 firms

Abstract

AbstractASEAN authorities took several steps to facilitate firms’ dual listing decisions within their region. However, more than three quarters of ASEAN-5 firms chose to list in European markets, which raises the need for further investigation to assess the determinants of destination choice decisions. Therefore, this study aims to evaluate the determinants of firms’ destination choice decisions. The logistic model has been employed in this study to evaluate the firms’ destination choice and uncover the determinants that drive the dual listing destination choice decision between Europe and the US. The study collected data on firms from the ASEAN-5 countries for the period of 2003–2017. The study’s findings showed that the higher the home country’s trade openness, the lower the number of firms pursuing a dual listing in European markets. Meanwhile, the greater the openness to FDI, the more likely it is that firms will seek to list in European markets. In addition, European markets are considered the main destination for firms characterized by low ownership concentration and high stock volatility. On the other hand, the US markets are the main choice for firms that originated from countries with low trade openness and high FDI openness, as well as for firms that are described as having high ownership concentration and low stock volatility. The current study has provided information to the authorities, investors, and market makers on the relationship between the abovementioned determinants and destination choice decisions, specifically for firms from the ASEAN-5 countries.

Keywords

• dual listing
• destination choice
• determinants