The Economic Consequences of Hosting the Olympic Games: International Evidence from Cross-Listings

Tsang，Albert1; Wang，Kun Tracy2; Zhu，Nathan Zhenghang2; Yu，Li3

2022-03-01

10.2308/JIAR-2021-033

Journal of International Accounting Research   Impact Factor & Quartile

1542-6297

1558-8025

Based on evidence from nine countries that hosted the Olympic Games, we show that relative to firms domiciled in non-Olympics-hosting countries, firms domiciled in Olympics-hosting countries engage in more cross-listing in the years following the Olympics. The effect of hosting the Olympics on firms’ cross-listing activities is more pronounced for firms domiciled in host countries with better performance in the Games; for firms domiciled in countries hosting the Summer Olympics; and for domestic firms. We also find that cross-listing firms domiciled in an Olympics-hosting country tend to cross-list in foreign countries with a greater institutional distance from the host country after the Olympics. Finally, we document a positive effect of Olympics-hosting on the consequences of cross-listing. Taken together, our findings suggest that hosting the Olympics improves the international reputation of the host country, which helps firms domiciled in that country to overcome the liability of foreignness when making cross-listing decisions.

cross-listing home bias Olympic Games sport

English

First

2-s2.0-85134560101

Scopus

1.Southern University of Science and Technology,College of Business,Department of Finance,Shenzhen,China
2.The Australian National University,College of Business and Economics,Research School of Accounting,Canberra,Australia
3.Nankai University,Business School,Department of Accounting,Tianjin,China

Tsang，Albert,Wang，Kun Tracy,Zhu，Nathan Zhenghang,et al. The Economic Consequences of Hosting the Olympic Games: International Evidence from Cross-Listings[J]. Journal of International Accounting Research,2022,21(1):101-129.

Tsang，Albert,Wang，Kun Tracy,Zhu，Nathan Zhenghang,&Yu，Li.(2022).The Economic Consequences of Hosting the Olympic Games: International Evidence from Cross-Listings.Journal of International Accounting Research,21(1),101-129.

Tsang，Albert,et al."The Economic Consequences of Hosting the Olympic Games: International Evidence from Cross-Listings".Journal of International Accounting Research 21.1(2022):101-129.