Download or read book Cross listing and firm value written by Gang Ji and published by . This book was released on 2005 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the economic consequences of cross-listing on the Chinese stock market. We argue that by adopting a higher disclosure standard through cross- listing firms voluntarily commit themselves to reducing information asymmetry. As a result, cross-listed firms are able to benefit from growth opportunities with less appropriated cash flow and lower cost of capital. The empirical evidence shows that cross-listed firms indeed command higher valuations than their non-cross-listed counterparts, after controlling for certain firm-specific attributes. This lends support to the corporate governance hypothesis of cross-listing on the Chinese stock market. The study also argues that an overall upgrad-ing of accounting standards cannot substitute for the cross-listing mechanism.
Download or read book Cross Listing and Firm Value Corporate Governance or Market Segmentation An Empirical Study of the Stock Market written by Andy G. Ji and published by . This book was released on 2007 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the economic consequences of cross-listing on the Chinese stock market. We argue that by adopting a higher disclosure standard through cross-listing firms voluntarily commit themselves to reducing information asymmetry. As a result, cross-listed firms are able to benefit from growth opportunities with less appropriated cash flow and lower cost of capital. The empirical evidence shows that cross-listed firms indeed command higher valuations than their non-cross-listed counterparts, after controlling for certain firm-specific attributes. This lends support to the corporate governance hypothesis of cross-listing on the Chinese stock market. The study also argues that an overall upgrading of accounting standards cannot substitute for the cross-listing mechanism.
Download or read book Cross Listing and Firm Value Corporate Governance Or Market Segmentation An Empirical Study of the Stock Market BOFIT Discussion Papers 14 2005 written by Gang Ji and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Expected Stock Returns written by Andreas Schillhofer and published by Springer-Verlag. This book was released on 2013-03-08 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on his Corporate Governance Rating (CGR) for German firms, Andreas Schillhofer documents a positive relationship between the CGR and firm value. In addition, there is strong evidence that expected returns are negatively correlated with the CGR if dividend yields and price-earnings ratios are used as proxies for the cost of capital.
Download or read book Discussion of the empirical evidence regarding the merit of companies cross listing their shares on foreign equity markets written by Matthias Hilgert and published by GRIN Verlag. This book was released on 2005-05-02 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2005 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: very good (UK: grade A), University of Glasgow (Department of Accounting and Finance), course: International Financial Management, language: English, abstract: Some non-American companies benefit from a US-listing and others do not even cross-list in the US. Several empirical studies show that foreign companies, which are listed in the US, are worth more. However, less than one out of 10 large public non-American companies float their shares in the US (Doidge et al., 2004). Why is cross-listing beneficial to some companies and not to others? In 1997 more than 4,700 companies were internationally cross-listed. But, during the past several years this number decreased significantly by 50% to 2,300 (end of 2002) companies (Karolyi, 2004). Today more and more foreign companies acknowledge that they cannot cross-list in the US. Moreover, some companies admit that they are no longer even willing to cross-list, because of the high costs and strict requirements (Economist, 2005). Still, there must be a benefit for some to cross-list. A number of studies point out that the benefits regarding cross-listing include a lower cost of capital, access to foreign capital markets, an extended global shareholder base, greater liquidity in the trading of shares, publicity, visibility and prestige. On the other hand, these companies face costs, which might erode the benefits. Typical costs associated with a US-listing are the SECreporting, reconciliation of financial statements with home and foreign standards, direct listing costs, compliance requirements, exposure to legal liabilities, taxes and various trading frictions as well as investment banking fees (Karolyi, 2004 and Doidge et al., 2004). This essay aims to examine the empirical evidence regarding the merit of cross-listing shares on foreign equity markets, especially listing shares in the US. First, it critically reviews the conventional wisdom. Secondly, it examines the new approach of the cross-listing premium. Finally, it ends with a summary of this project and my own opinions.
Download or read book Firm Value and Cross listings written by Nicola Cetorelli and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the valuation impact of a firm's decision to cross-list on a more (or less) prestigious stock exchange relative to its own domestic market. We use network analysis to derive broad market-based measures of prestige for forty-five country or regional stock exchange destinations between 1990 and 2006. We find that firms crosslisting in a more prestigious market enjoy significant valuation gains over the five-year period following the listing. We also document a reverse effect for firms cross-listing in less prestigious markets: These firms experience a significant decline in valuation over the five years following the listing. The reputation of the cross-border listing destinations is therefore a useful signal of a firm's value going forward. Our findings are consistent with the view that cross-listing in a prestigious market enhances a firm's visibility, strengthens corporate governance, and lowers informational frictions and capital costs. -- Cross-listings ; network analysis
Download or read book Bonding and Dominance in Securities Markets written by Amir N. Licht and published by . This book was released on 2003 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper questions the bonding hypothesis on cross-listing - namely, the idea that firms may list on a foreign stock market with a view to renting that market's superior corporate governance system. A critical review of extant evidence reveals that an opposite, quot;avoiding hypothesisquot; more aptly describes firms' cross-listing behavior in this regard. The dominant factor in global cross-listing patterns appears to be informational distance, which comprises aspects of geographical and cultural distance. The greater the distance between an issuer's origin and destination markets the greater are the hurdles to utilizing the destination market's regulatory regime. Drawing on recent advances in psychological research, this paper concretizes the notion of cultural distance in the context of corporate governance. Potential effects of such distance are demonstrated using Korean corporate governance as a representative case of Confucian governance. The paper concludes with a discussion of home-market dominance in price formation processes of cross-listed stocks.
Download or read book Stock Market and Investment The Signaling Role of the Market written by Cherian Samuel and published by World Bank Publications. This book was released on 1989 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Cross Listing of Chinese Firms written by Liu, Lixian and published by IGI Global. This book was released on 2014-01-31 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt: While many nations are still struggling from the global financial crisis and regaining their financial security, investors are considering alternative options for investing their money; and the secure financial sector is China appears as a viable option. International Cross-Listing of Chinese Firms examines the successful techniques and strategies that Chinese companies are using within their financial practices. It highlights the foreign-based multinational enterprise theories related to the major international stock markets. By providing the latest theories and research, this book will be beneficial for business practitioners, researchers, and managers interested in the relationship between cross-listing and firm valuation of Chinese firms.
Download or read book Firms Choices to Cross list Stocks on the U S and the U K Markets written by Jingwen Mu and published by . This book was released on 2014 with total page 319 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates some accounting issues that arise from firms' choices to cross-list stocks on the U.S. and the U.K. markets. Prior research shows that the benefits of cross-listing include a more liquid stock market, an increase in investor recognition, a decrease in the cost of capital, and a commitment to better corporate governance practices. However, the extent to which cross-listing can be used as an effective bonding mechanism is closely related to the choice of cross-listing destinations. Specifically, I hypothesise that differences in firm characteristics, accounting standards setting procedures, and the legal and regulatory environments between the U.S. and the U.K. markets lead to the expectation that firms cross-listed in the U.S. markets have better earnings quality than firms cross-listed in the U.K. In the context of this thesis, earnings quality refers to how precisely reported earnings convey a firm's true economic performance, and it is measured by models of accruals, earnings persistence and predictability, smoothness, and target beating. The results suggest the following. First, firms use accruals-based earnings management techniques to boost their earnings in the cross-listing year, but such evidence is only observed for firms cross-listed on the U.K markets. A further examination shows that, for the U.K. sample, the extent of earnings management is influenced by whether a firm raises new equity capital at cross-listing, while no such evidence is found for the U.S. sample. Second, the results provide mixed evidence that cross-listing firms have higher earnings quality than their home country counterparts that are not cross-listed. For firms cross-listed in the U.S., the differences in earnings quality are greater in the post-SOX period. Third, this thesis directly compares firms that choose between different cross-listing destinations and finds that firms cross-listed in the U.S. have higher earnings quality than firms cross-listed in the U.K. Fourth, home-country institutions are found to have a significant influence on cross-listing firms' reporting behaviour. The results are robust to controlling for innate factors known to affect the quality of earnings. Some interpretation issues arise when different measures of earnings quality are used, which shed light on future research directions.
Download or read book Bulletin written by and published by . This book was released on 2006 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Why Do Firms Cross List Their Shares on Foreign Exchanges A Review of Cross Listing Theories and Empirical Evidence written by Olga Dodd and published by . This book was released on 2013 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial markets' integration and technological advances in equity trading may have reduced the potential benefits from listing a firm's shares on a foreign exchange. Nevertheless, a significant number of firms continue to cross-list every year. This article examines the recent cross-listing trends and reviews the literature on motives to cross-list. The literature review includes a summary of theoretical studies grouped into cross-listing theories including market segmentation, liquidity, investor recognition, information disclosure, legal bonding, proximity preference and business strategy theories, and also includes a discussion of testable implications and empirical evidence for each of the above mentioned cross-listing theories.
Download or read book Corporate Governance International Cross Listing and Home Bias written by Michael R. King and published by . This book was released on 2003 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: The equity of Canadian-listed firms trades at a discount to U.S.-listed firms. This discount may be due to weaker corporate governance in Canada relative to the United States. Canadian firms may mitigate this discount by cross listing on a U.S. stock exchange. Results show that Canadian firms cross listed on a U.S. exchange achieve a higher valuation than firms listed exclusively in Canada, after controlling for factors known to affect valuation. Canadian firms that are predominantly traded in the U.S. receive similar valuations to other U.S.-listed firms, while cross listed Canadian firms with little U.S. turnover continue to trade at a discount.
Download or read book Corporate Governance Cross Listing and Managerial Response to Stock Price Discounting written by Rob Bauer and published by . This book was released on 2005 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Of the events signalling the end of the TMT bubble, scandals of corporate governance in the US and Europe captured the public imagination. In play were the greed and hubris of senior executives prompting further debate over countries' standards of corporate governance. If Enron and WorldCom were the US reference points, Ahold and Parmalat were the European instances. Ahold was especially important, being an instance of significant internal accounting and reporting failures and an instance of poor public disclosure of market-sensitive information. We report the analysis of market trading in Ahold stock in both Amsterdam and New York. It is shown that greater volatility in Amsterdam daily closing prices presaged the crisis to come in Ahold shares suggesting the leakage of information to privileged insiders. It is also shown that New York prices were inefficient not withstanding the advantages of a New York listing for the firm. Implications are drawn for the theory of global finance, and the nature and scope of convergence in national standards of corporate governance. It is argued that the co-existence of rather different regimes of governance may be undercut by the reaction of institutional investors in the global financial market place to the actions of corporate management.
Download or read book Cross listing Investment Sensitivity to Stock Price and the Learning Hypothesis written by Thierry Foucault and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that the sensitivity of corporate investment to stock price is higher for firms cross-listed in the U.S. than for firms that never cross-list. This difference is strong, does not exist prior to the cross-listing date, and does not vanish over time after this date. Moreover, the impact of a U.S. cross-listing on the investment-to-price sensitivity is stronger for firms that rank high on measures of governance quality, which suggests that our finding is not primarily driven by the improvement in corporate governance associated with a U.S cross-listing. Instead, we argue that a cross-listing enhances managers' reliance on stock prices because it makes stock prices more informative to managers. In support of this learning hypothesis, we find that the positive impact of a U.S. cross-listing on the investment-to-price sensitivity is higher when a cross-listing is more likely to stimulate trading based on information new to managers.
Download or read book ICEMBDA 2023 written by Jianguo Liu and published by European Alliance for Innovation. This book was released on 2024-01-19 with total page 1261 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 4th International Conference on Economic Management and Big Data Applications was successfully held in Tianjin, China from October 27th to 29th, 2023. This conference served as a platform for researchers, scholars, and industry professionals to exchange knowledge and insights in the field of economic management and the application of big data. The conference held great significance in advancing the understanding and application of economic management and big data. By bringing together experts from around the globe, the conference facilitated the exchange of innovative ideas and research findings, contributing to the development of these fields. The topics covered during the conference showcased the latest advancements and trends in enterprise economic statistics, information evaluation, blockchain technology, industrial structure optimization, information retrieval, data regression analysis, intelligent Internet of Things platforms, and data encryption. The discussions and presentations during the conference allowed participants to explore new methodologies, strategies, and technologies that can enhance economic management practices and leverage the potential of big data. The conference provided a platform for scholars and practitioners to share their experiences, insights, and best practices, fostering collaboration and networking opportunities. Furthermore, the proceedings were published, ensuring the dissemination of valuable research findings to a wider audience. The collective knowledge and research presented at the conference will contribute to the academic community, industry professionals, and policymakers, enabling them to make informed decisions and develop effective strategies in the fields of economic management and big data applications. Overall, the 4th International Conference on Economic Management and Big Data Applications played a pivotal role in promoting knowledge exchange, fostering innovation, and shaping the future of economic management by harnessing the power of big data.
Download or read book Stock Price Informativeness Cross Listings and Investment Decisions written by Thierry Foucault and published by . This book was released on 2013 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that a cross-listing allows a firm to make better investment decisions because it enhances stock price informativeness. This theory of cross-listings yield several predictions. In particular, it implies that the sensitivity of investment to stock prices should be larger for cross-listed firms. Moreover, the increase in value generated by a cross-listing (the cross-listing premium) should be positively related to the size of growth opportunities and negatively related to the quality of managerial information. We also analyze in details the effects of the geography of ownership (the distribution of holdings between foreign and domestic investors) on the cross-listing premium. In particular, we show that the sensitivity of the cross-listing premium to the size of growth opportunities increases when holdings (resp. market shares) become more evenly distributed between foreign and domestic investors (resp. markets). Last, we show that concentration of trading in the home market (flow-back) can indeed increase the cross-listing premium for some firms.
