4 Chi J Intl L 141
Amir N. Licht

This Article examines the bonding theory of cross-listing, which suggests that foreign firms engage in cross-listing with a view towards improving their corporate governance. The Article provides a comprehensive survey of the literature and argues that the empirical evidence supports an alternative theory, “the avoiding hypothesis.” The Article essentially argues that to the extent that corporate governance issues play a role in the cross-listing decision, at all, it is a negative role. As such, the Article argues that improvements in issuers’ corporate governance can be achieved primarily through sustained efforts by lawmakers and regulators in firms.