Suchergebnisse

Includes bibliographical references. ; Number of sources in the bibliography: 38 ; Thesis (Ph. D.) -- University of Cyprus, Faculty of Economics and Management, Department of Public and Business Administration, June 2006. ; The University of Cyprus Library holds the printed form of the thesis. ; This PhD dissertation consists of three essays on cross listings: a. The Operating Performance of Exchange-Listed American Depositary Receipts. b. Cross Listing, Bonding and Corporate Governance. c. Cross Listing on U.S. Stock Exchanges and the Earnings Management Hypothesis. The questions analyzed in this dissertation arise because of possible frictions in the transition of information from corporations to markets. To overcome informational frictions a company might choose to list its equity on foreign exchanges with strong legal institutions. The U.S. is considered to be a country with strong and strict legal institutions. Coffee (2002) suggest that cross-listed firms on U.S. stock exchanges face (1) the increased enforcement by the Securities and Exchange Commission, (2) a more demanding litigation environment, and (3) enhanced disclosure and reconciliations to U.S. generally accepted accounting principles. All of these cross listing effects may reduce the information asymmetry between the management of the firm and markets. Prior literature has examined the role and impact of cross listing among others on valuation, cost of capital, access to capital and information environment. However, other questions arise naturally such as do firms experience improvements in their profitability after the listing? To what extent the suggested U.S. securities laws are actually enforced in relation to foreign issuers and how these securities laws affect firm's corporate governance? What is the cross listed firms' management behaviour in terms of managing financial statements? This dissertation consists of three essays on cross listings designed to address these questions. The first essay examines the operating performance of non-US firms that enter major US stock exchanges through American Depositary Receipts (ADR). We provide evidence that capital- raising cross-listed firms experience improvement in operating performance after the listing relative to a non-cross-listed matched sample of firms and relative to the pre-listing period. No such result is observed for non-capital-raising cross-listed firms. These results suggest that the type of ADR conveys information about post-listing operating performance. Moreover, we provide evidence for a positive relation between the cross listing announcement abnormal returns and the post listing abnormal changes in operating performance. This relation suggests that the market anticipates the post-listing abnormal changes in operating performance. The second essay examines the relationship between cross listing and corporate governance. We find that cross-listed firms have more independent board and audit committees after the listing relative to a non-cross-listed matched sample of firms and relative to the pre-listing period. Moreover, cross-listed firms experience changes in their ownership structure after the listing. Finally, we provide evidence that the sensitivity of the relation between cross-listed firm's valuation with audit committee independence and ownership structure becomes more important after the listing. These results are consistent with the bonding role of the cross listings on US stock exchanges. The third essay examines managers' behaviour around the cross listing in terms of earnings management. We use Canadian cross-listed firms to tone down the informational effect of the cross listings due to the economic proximity between Canadian and US markets. In this way incentives for management of earnings might be stronger. We provide evidence that firms report earnings in excess of cash flows by taking positive discretionary accruals prior to their listing in US. Furthermore, discretionary accruals reverse after the listing, resulting in a negative relation between pre-listing discretionary current accruals and post-listing net income growth relative to a matched sample. The market does not reflect this information and thus cross-listed firms are found to underperform a matched sample by about 12% for the three-year period after the listing.

Includes bibliographical references. ; Number of sources in the bibliography: 38 ; Thesis (Ph. D.) -- University of Cyprus, Faculty of Economics and Management, Department of Public and Business Administration, June 2006. ; The University of Cyprus Library holds the printed form of the thesis. ; This PhD dissertation consists of three essays on cross listings: a. The Operating Performance of Exchange-Listed American Depositary Receipts. b. Cross Listing, Bonding and Corporate Governance. c. Cross Listing on U.S. Stock Exchanges and the Earnings Management Hypothesis. The questions analyzed in this dissertation arise because of possible frictions in the transition of information from corporations to markets. To overcome informational frictions a company might choose to list its equity on foreign exchanges with strong legal institutions. The U.S. is considered to be a country with strong and strict legal institutions. Coffee (2002) suggest that cross-listed firms on U.S. stock exchanges face (1) the increased enforcement by the Securities and Exchange Commission, (2) a more demanding litigation environment, and (3) enhanced disclosure and reconciliations to U.S. generally accepted accounting principles. All of these cross listing effects may reduce the information asymmetry between the management of the firm and markets. Prior literature has examined the role and impact of cross listing among others on valuation, cost of capital, access to capital and information environment. However, other questions arise naturally such as do firms experience improvements in their profitability after the listing? To what extent the suggested U.S. securities laws are actually enforced in relation to foreign issuers and how these securities laws affect firm's corporate governance? What is the cross listed firms' management behaviour in terms of managing financial statements? This dissertation consists of three essays on cross listings designed to address these questions. The first essay examines the operating performance of non-US firms that enter major US stock exchanges through American Depositary Receipts (ADR). We provide evidence that capital- raising cross-listed firms experience improvement in operating performance after the listing relative to a non-cross-listed matched sample of firms and relative to the pre-listing period. No such result is observed for non-capital-raising cross-listed firms. These results suggest that the type of ADR conveys information about post-listing operating performance. Moreover, we provide evidence for a positive relation between the cross listing announcement abnormal returns and the post listing abnormal changes in operating performance. This relation suggests that the market anticipates the post-listing abnormal changes in operating performance. The second essay examines the relationship between cross listing and corporate governance. We find that cross-listed firms have more independent board and audit committees after the listing relative to a non-cross-listed matched sample of firms and relative to the pre-listing period. Moreover, cross-listed firms experience changes in their ownership structure after the listing. Finally, we provide evidence that the sensitivity of the relation between cross-listed firm's valuation with audit committee independence and ownership structure becomes more important after the listing. These results are consistent with the bonding role of the cross listings on US stock exchanges. The third essay examines managers' behaviour around the cross listing in terms of earnings management. We use Canadian cross-listed firms to tone down the informational effect of the cross listings due to the economic proximity between Canadian and US markets. In this way incentives for management of earnings might be stronger. We provide evidence that firms report earnings in excess of cash flows by taking positive discretionary accruals prior to their listing in US. Furthermore, discretionary accruals reverse after the listing, resulting in a negative relation between pre-listing discretionary current accruals and post-listing net income growth relative to a matched sample. The market does not reflect this information and thus cross-listed firms are found to underperform a matched sample by about 12% for the three-year period after the listing.

AbstractThis study investigates whether relaxation of firms' financial constraints is an important outcome of the US cross‐listing mechanism. We use the association between investment spending and cash flow to test for the presence and importance of firms' financing constraints. Consistent with the bonding hypothesis, the results suggest that US exchange and private placement cross‐listings significantly alleviate firms' financing constraints. In addition, the financial benefits associated with exchange listings are larger than those associated with private listings, while on the other hand, over‐the‐counter programs do not improve capital allocation. The study also shows that US exchange cross‐listing benefits have not been eroded by the enactment of the Sarbanes‐Oxley (SOX) Act in 2002. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.

This study examines the relationship between cross-listing and managerial compensation of Chinese firms that concurrently issued A- and B-shares or A- and H-shares during 2001 - 2010. The results show that executive compensation is a positive factor to motivate Chinese A-share firms to cross-list as B- or H-shares; it implies that cross-listings could be employed as a way of asset appropriation at the managers' discretion. The results also confirm that corporate governance is important in determining cross-listings. Under the weak corporate governance institution, Chinese firms were chosen to cross-list based on political considerations rather than on economic merits, serving as a vehicle to signal the quality of state owned enterprises. The results are drawn on agency theory, signalling hypothesis and bonding hypothesis.

"This book examines the successful techniques and strategies that Chinese companies are using within their financial practices, highlighting the foreign-based multinational enterprise theories related to the major international stock markets"--