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| Author | : Lei Wang (M.B.S.) |
| Publisher | : |
| Total Pages | : 82 |
| Release | : 1998 |
| Genre | : Corporations |
| ISBN | : |
| Author | : Arturo Bris |
| Publisher | : |
| Total Pages | : 39 |
| Release | : 2019 |
| Genre | : |
| ISBN | : |
It is well known that cross-listing domestic stocks in foreign exchanges has significant valuation effects on the listed company's shares. Using a sample of firms with dual shares, we explore the differential effects of cross-listing on prices and we are able to separate the different sources of the benefits of cross-listing. Our results show that even though the market segmentation and bonding effects are both statistically significant, the economic significance of segmentation is more than double that of bonding. Furthermore, we document an economically and statistically significant increasse in the liquidity of both share classes after the listing. Overall, our results explain why less and less firms are willing to list in the U.S.: Sarbanes Oxley has increased the cost of adopting better governance while its benefits are not substantial; and market segmentation has decreased significantly in the last years.
| Author | : Ana Paula Serra |
| Publisher | : |
| Total Pages | : 47 |
| Release | : 1998 |
| Genre | : |
| ISBN | : |
This paper examines the effects on stock returns of dual-listing on an international exchange. My sample consists of 70 firms from 10 emerging markets that dual-listed on the NYSE, NASDAQ and SEAQ-I over the period 1991-1995. The theoretical motivation for this paper lies in the context of the segmentation of international capital markets. When a firm dual-lists, it makes its shares available to a broader investor base resulting in better risk sharing. In the particular case of emerging markets, where barriers to investment are more severe in the sense that international investment is, in the limit, precluded by regulatory and ownership barriers, we expect those effects to be more pronounced. Previous literature has looked at the effects of foreign listings and has found support for investor?s awareness and liquidity arguments but is inconclusive regarding the capital markets segmentation explanation. In this paper, I re-examine that issue: I evaluate whether an international dual-listing has any significant effect on returns and I proceed to investigate whether there is evidence to support an International Asset Pricing based explanation. In addition I compare the impact of US and London SEAQ-I listings. My results show that firms experience significant positive abnormal returns before listing and a significant decline in returns following listing and this effect is more pronounced for emerging markets? firms. Moreover, for these firms, the valuation impact is similar across exchanges.
| Author | : Elton George McGoun |
| Publisher | : |
| Total Pages | : 304 |
| Release | : 1987 |
| Genre | : Securities |
| ISBN | : |
| Author | : Matthias Hilgert |
| Publisher | : GRIN Verlag |
| Total Pages | : 18 |
| Release | : 2005-05-02 |
| Genre | : Business & Economics |
| ISBN | : 3638373304 |
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.
| Author | : Sie Ting Lau |
| Publisher | : |
| Total Pages | : |
| Release | : 1992 |
| Genre | : Securities |
| ISBN | : |
| Author | : Huyen Chau Doan |
| Publisher | : |
| Total Pages | : 104 |
| Release | : 2010 |
| Genre | : |
| ISBN | : |
| Author | : Xuxing Huang |
| Publisher | : |
| Total Pages | : |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
This paper evaluates the short-term valuation impact of U.S. class action lawsuits by focusing on both sued and non-sued foreign companies listed in the United States. Using a comprehensive dataset that includes stock- and company-level information in both the U.S. and local home markets, we examine how private U.S. securities litigations affect the market value of both sued foreign companies and foreign issuers not accused of wrongdoing. We find that during the event period surrounding the lawsuit-filing date, there is a significant negative stock price reaction for the sued foreign companies. Moreover, investors also tend to react negatively towards non-sued foreign issuers during this period. The logistic regression results suggest that the determinants of lawsuit propensity are similar for foreign firms cross-listed in the U.S. and U.S. domestic companies. Finally, certain firm-, lawsuit-, and country-level characteristics can explain the degree of stock market reactions. The overall results provide evidence that private class action lawsuits in the U.S. have economically significant impact on cross-listed foreign issuers, thus playing an important role in overseeing and disciplining foreign companies.
| Author | : Ana Paula Serra |
| Publisher | : |
| Total Pages | : |
| Release | : 2007 |
| Genre | : |
| ISBN | : |
This paper examines the effects on stock returns of dual-listing on an international exchange. My sample consists of 70 firms from 10 emerging markets that dual-listed on the NYSE, NASDAQ and SEAQ-I over the period 1991-1995. The theoretical motivation for this paper lies in the context of the segmentation of international capital markets. When a firm dual-lists, it makes its shares available to a broader investor base resulting in better risk sharing. In the particular case of emerging markets, where barriers to investment are more severe in the sense that international investment is, in the limit, precluded by regulatory and ownership barriers, we expect those effects to be more pronounced. Previous literature has looked at the effects of foreign listings and has found support for investoris awareness and liquidity arguments but is inconclusive regarding the capital markets segmentation explanation. In this paper, I re-examine that issue: I evaluate whether an international dual-listing has any significant effect on returns and I proceed to investigate whether there is evidence to support an International Asset Pricing based explanation. In addition I compare the impact of US and London SEAQ-I listings. My results show that firms experience significant positive abnormal returns before listing and a significant decline in returns following listing and this effect is more pronounced for emerging markets firms. Moreover, for these firms, the valuation impact is similar across exchanges.
| Author | : Emmanuel O. Kumah |
| Publisher | : International Monetary Fund |
| Total Pages | : 75 |
| Release | : 2009-11-01 |
| Genre | : Business & Economics |
| ISBN | : 1451873891 |
This paper analyzes the seven valuation methods for unlisted direct investment equity included in the recently adopted IMF Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6). Based on publicly available Danish data, we test the three methods that are generally applicable and find that the choice of valuation method and estimation technique can have a highly significant impact on the international investment position, pointing to the need for further harmonization. The results show that the price-to-book value method generates more robust market value estimates than the price-to-earnings method. This finding suggests that the valuation basis for the forthcoming Coordinated Direct Investment Survey - own funds at book value -will provide useful information for compiling the international investment position.
