Abstract

The purpose of this study was to investigate the key reasons behind the decision by the firm management of
Nairobi Securities Exchange (NSE) listed firms to cross-list in East African Exchanges. The study employed a
descriptive research design. A Likert type questionnaire was administered to the Chief Executive Officers (CEOs)
or the Chief Financial Officers (CFOs) of the target firms. The study conducted factor analysis to identify the key
reasons for the cross-listing in the East African region. The key reasons identified were investor recognition,
expansion of business, boosting of sales and desire to lower the cost of capital. The factor analysis did not
provide evidence that legal bonding is a motivation for the cross-listing by NSE firms. The findings from the
study appear to indicate that there may exist contextual differences in the decisions to cross-list, consequently
generalizations may not suffice.

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