European companies that list on U.S. exchanges have delivered worse stock performance than their peers who remain listed in Europe, according to a new report from Mergermarket. The research challenges the long-held belief that American markets provide better valuations for European firms. Over the past decade, European companies choosing U.S. listings have consistently underperformed compared to those staying home.

This finding contradicts conventional wisdom about the benefits of accessing U.S. capital markets. The report suggests that the costs and complexities of cross-listing may outweigh potential advantages for many European firms. Mergermarket's analysis indicates that investors may not be rewarding European companies for the additional regulatory burdens and operational costs associated with maintaining dual listings.

The study raises questions about the strategic value of U.S. listings for European companies. While American markets offer greater liquidity and potentially larger pools of capital, the data suggests these benefits may not translate into superior returns for shareholders. The findings could influence future decisions by European companies considering cross-border listings.