On October 12, 2009
Are Foreign Share Listings an Expensive Luxury?
Companies used to accumulate foreign listings like boy scouts collect badges or travelers leave stickers on their luggage. But listings on overseas stock exchanges have fallen from favour because they are too complex and don’t work. The Aviva insurance group is thus going against the trend in seeking a New York listing. Aviva is the first UK business to list in New York since 2000. The traffic has been the other way, with companies such as Cable & Wireless scrapping their US share quotations for lack of use. But the big decider for many companies in cancelling their American listings was Sarbanes-Oxley, the draconian legislation introduced after Enron. The bureaurocracy made it too difficult to bother with (though it also…
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