Economic Change and Restructuring

, Volume 42, Issue 4, pp 229–262 | Cite as

Information-based trade in Russia and the effects of listing abroad

  • Marco Wölfle


This paper offers empirical evidence about transaction cost in Russia. After relating empirical measures of information and liquidity to corporate characteristics, competitive theories about cross-listings are tested. Since cross-listings generate competitive effects on transaction costs, potential to affect price discovery exists. The results reveal a lower share of private information for cross-listed firms since more transparent accounting standards reduce the incentives to collect superior information. Robustness for the evidence presented in favor of the legal bonding hypothesis is provided by those firms which list with the highest Russian standards. Measures of information-based trade are lower and the likelihood of listing abroad is significantly higher.


Information-based trade Cross-listing Bonding hypothesis 

JEL Classification

D53 D82 G14 


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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  1. 1.Institute for Research in Economic EvolutionUniversity of FreiburgFreiburgGermany

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