Firm Value, Cross-Listing Premium and the Sarbanes-Oxley Act
Marcelo Bianconi () and
No 738, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University
This paper presents empirical evidence on the effects of the Sarbanes-Oxley Act of 2002 on the value of firms and on the cross-listing choice of firms destined to three major markets in North America, Asia and Europe. We use dynamic panel data methods and treatment effects methods to find that Sarbanes-Oxley has had a negative impact on the value of firms worldwide. However, the effect of Sox on the cross-listing decision is positive in the US destination and negative in the Germany destination; and the Hong Kong destination seems to attract cross-listing of firms with lower valuations relative to the US and Germany destination. In terms of the cross-listing decision, the evidence is in favor of crowding in the market where the accounting standards are better, lending support to the signaling and bonding hypotheses of cross-listing choice.
Keywords: Cross-listing; Sarbanes-Oxley; dynamic panel data; treatment effects. (search for similar items in EconPapers)
JEL-codes: G0 G3 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:tuf:tuftec:0738
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