The Impact of Cross-listing on Firm Value - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Impact of Cross-listing on Firm Value write by Meichen Wang. This book was released on 2011. The Impact of Cross-listing on Firm Value available in PDF, EPUB and Kindle.
Firm Value and Cross-listings
Firm Value and Cross-listings - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Firm Value and Cross-listings write by Nicola Cetorelli. This book was released on 2010. Firm Value and Cross-listings available in PDF, EPUB and Kindle. 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
Effects of Cross-listing on Valuation and Firm Performance [MBA Thesis a Ccompanied by a CD-ROM]
Effects of Cross-listing on Valuation and Firm Performance [MBA Thesis a Ccompanied by a CD-ROM] - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Effects of Cross-listing on Valuation and Firm Performance [MBA Thesis a Ccompanied by a CD-ROM] write by . This book was released on 2014. Effects of Cross-listing on Valuation and Firm Performance [MBA Thesis a Ccompanied by a CD-ROM] available in PDF, EPUB and Kindle. The main objective of this study was to examine the effects of regional cross-listing on firm value and performance on Kenyan firms. The specific research objectives for this study were: (i) to determine the effect of cross-listing on valuation; (ii) to determine the effect of cross-listing on profitability and growth; (iii) to determine the effect of cross-listing on liquidity and leverage and; (iv) to determine the effect of cross-listing on operational performance. The scope of the study focused on 5 cross-listed firms whose primary listing is the NSE. Thus, conducting a census the study analyzed data from firms? financial statements and the NSE daily market averages and analyzed the firms? value, profitability and growth, liquidity and leverage and, operational performance to examine the differences prior and subsequent to listing. The study conducted a time series analysis, taking into consideration the independence of the variables are concerned with a time series data set, thus sought to examine the evolution of the variables over time using data spanning seven years i.e. three years before cross-listing, the year of cross-listing and three years after cross-listing. The study further subjected the results to a univariate analysis in order to examine the significance of the findings using the paired t-test for the firms Tobin?s Q, liquidity and leverage, profitability and growth and operational performance. Additionally, the findings were also subjected to a correlation analysis to measure the degree of relationship between the variables under study. The results on firm value show that on average the firm value decreased after cross-listing but the results had no statistically significant difference from before and after cross-listing. Tobin?s Q and profitability had a strong correlation indicating that the change in firm value has a strong effect to the changes in the firm profitability. The results from the study on Liquidity and Leverage, using a before and after comparison from the paired t-test revealed that on average the liquidity of the firm increased while as leverage decreased. Additionally, the study also revealed that leverage and liquidity had a moderately negative correlation. Depending on the firm, profitability and growth varied and thus there was no consistent trend evident in the study. However, a before and after comparison of the variables yielded that despite the increase in profitability and growth of the firms, the results had no significant difference. The time series analysis yielded that operational performance of majority of the cross-listed firms? motive by market incentive to cross-list, increased. Jubilee Insurance was the only firm that reported an increase after cross-listing. A before and after comparison yielded that there was a decrease in operational performance but there was no statistical significant difference in the results. Additionally, liquidity and total assets had a weak positive correlation indicating that the changes in leverage does not weakly/does not correlate with the changes in total assets. The study recommends that for firms to sustain their improved firm value and financial performance post-listing, firms should not only comply with the new regulations that they have willingly subjected themselves to but, to take the extra mile to improve corporate governance, improve information disclosure exceeding the bare minimum and creating more value for shareholders.
The impact of the regional cross-listing of stocks on firm value in sub-Saharan Africa
The impact of the regional cross-listing of stocks on firm value in sub-Saharan Africa - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The impact of the regional cross-listing of stocks on firm value in sub-Saharan Africa write by Olatundun Janet Adelegan. This book was released on 2009-05-01. The impact of the regional cross-listing of stocks on firm value in sub-Saharan Africa available in PDF, EPUB and Kindle. This paper examines the impact of regional cross-listing on stock prices. The sample consists of sub- Saharan African firms that have cross-listed during the period 1992-2008. Using event study methodology, the study finds positive abnormal returns around the date of the regional cross-listing of stocks. The positive announcement period effect, together with the normal post cross-listing performance, shows that regional cross-listing increases firm value. Overall, this provides evidence that firms benefit from listing outside their home market and need to be taken into consideration by SSA country authorities as they seek a regional approach to stock market development. Thus, policy makers of both the countries of primary listing (home country) and secondary listing (host country) need the right policy handles to conceptualize, facilitate and steer regional cross-listing efforts by firms. Through complementary policy-based efforts, policy makers can set the stage for regional cross-listings and harness the numerous related benefits.
Cross Listing and Firm Value - Corporate Governance or Market Segmentation? An Empirical Study of the Stock Market
Cross Listing and Firm Value - Corporate Governance or Market Segmentation? An Empirical Study of the Stock Market - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Cross Listing and Firm Value - Corporate Governance or Market Segmentation? An Empirical Study of the Stock Market write by Andy G. Ji. This book was released on 2007. Cross Listing and Firm Value - Corporate Governance or Market Segmentation? An Empirical Study of the Stock Market available in PDF, EPUB and Kindle. 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.
