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Friday, July 17, 2020 | History

1 edition of International cross-listing and the bonding hypothesis found in the catalog.

International cross-listing and the bonding hypothesis

Michael R. King

International cross-listing and the bonding hypothesis

by Michael R. King

  • 134 Want to read
  • 20 Currently reading

Published by Bank of Canada in Ottawa .
Written in English

    Subjects:
  • Corporations, Foreign -- Valuation -- United States.,
  • Securities -- Listing -- United States.,
  • Stocks -- Prices -- United States.

  • Edition Notes

    Other titlesInternational cross listing and the bonding hypothesis
    Statementby Michael R. King and Dan Segal.
    SeriesBank of Canada working paper -- 2004-17, Working paper (Bank of Canada) -- 2004-17
    ContributionsSegal, Dan, 1969-, Bank of Canada.
    The Physical Object
    Paginationv, 40 p. ;
    Number of Pages40
    ID Numbers
    Open LibraryOL22151600M

      There are several hypotheses in the literature explaining the benefits of cross-listing in US capital markets and the motivations for delisting. This paper finds support of the bonding hypothesis however in addition I will provide a brief overview of two other hypotheses that provide further insights of the decision to cross-list and delist. Corporate governance, agency problems and international cross-listings: A defense of the bonding hypothesis. G. Karolyi (). Emerging Markets Review, , vol. 13, issue 4, Abstract: Why firms from around the world seek to cross-list their shares on overseas exchanges has intrigued scholars during the past two decades. A general dissatisfaction with the conventional wisdom about Cited by:

    studies abnormal returns around cross-listing hypothesis for firm value and financial performance but the study concluded that these changes were not sustained for the Kenyan firms’ regional cross-listing case. Therefore, the study recommends enhanced market regulation and corporate governance consistent with the bonding hypothesis.   Multiple listings of stock is a widespread and enduring phenomenon. For instance, Gagnon and Karolyi (forthcoming) report that about 3, firms had two or more listings in , indicating that managers' appetite for international cross-listings is not fading, despite increasing market integration. The motives and valuation effects of cross-listings have been extensively analyzed. 1 In Cited by:

      Alternatively, a US cross-listing may facilitate informal reputation building, an argument known as the reputational bonding hypothesis. Both mechanisms are theoretically plausible and they could operate in tandem, making it empirically difficult to disentangle their effects. International Cross-Listing, Firm Performance, The bonding hypothesis of Coffee () and Stulz () posits that firms cross-listed on a major U.S. stock exchange have better corporate governance than non-cross-listed firms from the same country, ceteris paribus, since cross-.


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International cross-listing and the bonding hypothesis by Michael R. King Download PDF EPUB FB2

The authors describe a new view of cross-listing that links the impact on firm valuation to the firm's ability to develop an active secondary market for its shares in the U.S. markets. Contrary to previous research, cross-listing may not provide benefits for all firms, even when those firms meet the highest regulatory requirements for disclosure and supervision.

Request PDF | International Cross-Listing and the Bonding Hypothesis | The authors describe a new view of cross-listing that links the impact on firm valuation to the firm's ability to develop an. bonding itself to the U.S. securities regime through cross-listing. The bonding hypothesis suggests that firms from countries with poor protection of minority shareholders signal their desire to respect the rights of shareholders by listing in a jurisdiction with higher Cited by: Contrary to previous research, cross-listing does not provide benefits for all firms, even when those firms meet the highest regulatory requirements for disclosure and supervision.

When cross-listed firms are divided into two groups on the basis of their share turnover in the home market relative to the U.S. market, only the firms that develop active trading in the U.S.

market experience an increase in valuation. International Cross-Listing and the Bonding Hypothesis By Michael R. King and Dan Segal Download PDF ( KB)Author: Michael R. King and Dan Segal.

International Cross-Listing and the Bonding Hypothesis. The authors describe a new view of cross-listing that links the impact on firm valuation to the firm\u27s ability to develop an active secondary market for its shares in the U.S.

markets. The effectiveness of this reputational bonding is witnessed in the ratio of trading on the U Author: Dan SEGAL and Michael King. To gain the full benefits of cross-listing, a foreign firm must convince investors that their shareholder rights will be protected.

The effectiveness of this reputational bonding is witnessed in the amount of trading on the U.S. market relative to the home by: CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): ith more than listings inCanada has the largest number of cross-listed shares on U.S.

stock ex-changes. Canadian firms cross-list using an ordinary listing, meet all the same fil-ing and disclosure requirements as a U.S. firm, and are subject to supervision and enforcement by the Securities and Exchange.

The authors describe a new view of cross-listing that links the impact on firm valuation to the firm's ability to develop an active secondary market for its shares in the U.S. markets. Contrary to previous research, cross-listing may not provide benefits for all firms, even when those firms meet the highest regulatory requirements for disclosure and by:   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. International Cross-listing, Firm Performance and Top Management Turnover: A Test of the Bonding Hypothesis∗ Ugur Lel and Darius P.

Miller∗∗ September Abstract We examine a primary outcome of corporate governance, the ability to identify and terminate. Reliable information about the coronavirus (COVID) is available from the World Health Organization (current situation, international travel). Numerous and frequently-updated resource results are available from this search.

International Cross-listing, Firm Performance and Top Management Turnover: A Test of the Bonding Hypothesis Abstract We examine a primary outcome of corporate governance, the ability to identify and terminate poorly performing CEOs, to test the effectiveness of U.S.

investor protections in improving the corporate governance of cross-listed by:   They associate this so-called cross-listing value premium with the bonding hypothesis of Coffee () and Stulz (). Bonding argues that a secondary listing of a firm’s stock on an exchange in the United States that imposes higher regulatory costs and greater legal protections for minority shareholders than the firm’s primary exchange Cited by:   International Cross‐Listing, Firm Performance, and Top Management Turnover: A Test of the Bonding Hypothesis.

UGUR LEL. Search for more papers by this author. DARIUS P. MILLER. Lel is from the Federal Reserve Board and Miller is from Edwin L. Cox School of Business at Southern Methodist University.

We thank an anonymous referee and associate Cited by: International Cross-Listing of Chinese Firms: /ch Regardless of the considerable challenges faced by the Chinese domestically, the opportunities China presents to the world are still attractive.

The Global. Introduction. Does cross-listing in the U.S. improve the corporate governance of foreign firms. The ``Bonding Hypothesis'' proposed by Coffee (, ) and Stulz () predicts that after listing on a major U.S. stock exchange, foreign firms become subject to stringent U.S.

investor protections which constrain insiders from expropriating minority shareholders. International Finance Discussion Papers: International Cross-listing, Firm Performance and Top Management Turnover: A Test of the Bonding Hypothesis [Ugur Lel, Darius P.

Miller, United States Federal Reserve Board] on *FREE* shipping on qualifying : Darius P. Miller. For a sample of cross-listings by European companies in the US, in the UK, and within Europe, the findings show that US and UK cross-listings, on average, result in positive cumulative abnormal returns around the announcement of cross-listing.

No such evidence exists for. The bonding hypothesis ultimately requires a comparison between the cross-listed firms and their home market peers (Leuz, ). Accordingly, bonding with a country with a better information environment improves reporting behavior in the originating by: 3.

Journals & Books; Register Sign in. Vol Issue 4, DecemberPages Corporate governance, agency problems and international cross-listings: A defense of the bonding hypothesis Cited by: The bonding hypothesis of Coffee () and Stulz () posits that firms cross-listed on a major U.S.

stock exchange have better corporate governance than non-cross-listed firms from the same country, ceteris paribus, since cross performance. International Cross-Listing .Cross-listing (or multi-listing, or interlisting) of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange.

To be cross-listed, a company must thus comply with the requirements of all the stock exchanges in which it is listed, such as filing.