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Subject = legal bonding;
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Displaying Results 1 - 3 of 3 on page 1 of 1
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Cross-listing in the U.S. and domestic investor protection
(2006)
O'Connor, Thomas G.
Cross-listing in the U.S. and domestic investor protection
(2006)
O'Connor, Thomas G.
Abstract:
Using the change in ordinary dividend payout as a proxy for improved governance, we show that crosslisting in the U.S. is associated with enhanced protection for the minority ordinary shareholders of exchangelisted non-U.S. firms. These firms substitute dividends for enhanced governance. We find no such effect for Rule 144a Portal firms. Interestingly, we document evidence inconsistent with the legal bonding hypothesis for Level 1 OTC firms. We believe that their ability to pay lower dividends post-listing is primarily due to their ability to credibly commit to fair treatment of their minority investors, given their record for equitable treatment of their ordinary shareholders. They achieve this reputation by consistently paying out a sizable proportion of their earnings as dividends. In addition, we find that the firm-level governance of Level 1OTCfirms, as measured by the number of closely held shares improves in the post-listing period.We find no such effect for SEC Rule 144a tra...
http://mural.maynoothuniversity.ie/8497/
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Cross-listing in the U.S. and domestic investor protection. Economics Department Working Papers Seroes N186/12/07
(2007)
O'Connor, Thomas G.
Cross-listing in the U.S. and domestic investor protection. Economics Department Working Papers Seroes N186/12/07
(2007)
O'Connor, Thomas G.
Abstract:
Using the change in ordinary dividend payout as a proxy for improved governance, I show that cross-listing in the U.S. is associated with enhanced protection for the minority ordinary shareholders of exchange listed non-U.S. firms. These firms substitute dividends for enhanced governance. I find no such effect for Rule 144a firms. Interestingly, I document evidence inconsistent with the legal bonding hypothesis for Level 1 firms. I believe that their ability to pay lower dividends post-listing is primarily due to their ability to credibly commit to fair treatment of their minority investors, given their record for equitable treatment of their ordinary shareholders. They achieve this reputation by consistently paying out a sizable proportion of their earnings as dividends. I find that the firm-level governance of Level 1 firms, as measured by the number of closely held shares improves in the post-listing period. I find no such effect for Rule 144a traded firms. My results al...
http://mural.maynoothuniversity.ie/830/
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Mark
Legal bonding, investor recognition, and cross-listing premia in emerging markets. Economics Finance & Accounting Working Paper Series N226-12
(2012)
O'Connor, Thomas
Legal bonding, investor recognition, and cross-listing premia in emerging markets. Economics Finance & Accounting Working Paper Series N226-12
(2012)
O'Connor, Thomas
Abstract:
Using the IFC investable measure to designate firms as either investable or non-investable prior to cross-listing, I show that Level 2/3 cross-listing firms that were previously non-investable enjoy the largest "cross-listing premia". Since previously non-investable firms are likely to experience the largest increase in their shareholder base post-listing, the results are consistent with the notion that enhanced "recognition" explains cross-listing premia. For these firms, a combination of bonding and greater recognition serves to deliver the largest cross-listing premia. For previously investable firms, bonding alone is sufficient to generate cross-listing premia.
http://mural.maynoothuniversity.ie/3803/
Displaying Results 1 - 3 of 3 on page 1 of 1
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