I.4. Different Geographical Origins Imply Different
Purposes
After the analysis of the reasons pleading for foreign
cross-listing, companies may be depicted into two main classes, each one
differentiated by its purposes.
The first class is mostly made up of companies originating
from the MEDC countries. These companies generally decide to perform one or
several foreign cross-listings in another MEDC country for business and/or
financial motivations, but also sometimes to comply with reasons of "national
sensibility" (further details in part I.3.b. Corporate Governance Motivations,
sub part M&A operations).
As regards the second class of cross-listed companies, we may
consider companies originating from the emerging countries, mostly from the
BRIC (Brazil, Russia, India and China), but also to a lesser extent from
Mexico, Turkey, South Korea, Taiwan, Indonesia and South America. The main
purposes are more oriented towards corporate governance matters (accounting
standards, investor's rights protection, better media/analyst coverage,
visibility to clients and suppliers), but also towards the access to easier and
more competitive financing conditions.
Conversely to the tendency in the MEDC countries, foreign
cross-listings still have an interest for companies from emerging countries. Up
to now, there is still a large number of foreign cross-listings with issuers
from emerging countries, consequence of not sufficiently developed local
financial markets and low domestic regulatory standards.
| 
