کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5101593 1479344 2017 20 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
The joint role of the bonding mechanisms and the reduction in market segmentation in valuation of firms cross-listed as Global Depositary Receipts (GDRs)
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
The joint role of the bonding mechanisms and the reduction in market segmentation in valuation of firms cross-listed as Global Depositary Receipts (GDRs)
چکیده انگلیسی
Using a sample of GDRs cross-listed in London, we revisit the debate regarding the validity of the market segmentation and the bonding hypotheses for a cross-listing phenomenon. Unlike prior studies that relied on emerging/developed market partitioning of countries, we use equity trading costs to determine the degree of market segmentation, which is a more direct and less noisy measure of this construct. Additionally, there is little correlation between this metric and the level of home-country investor protection for examined GDRs, therefore providing stronger settings to distinguish between the segmentation and bonding explanations. We find that legal bonding mechanisms and reduction in segmentation have a positive impact on changes in firm value upon cross-listing, when examined as standalone frameworks. Next, we report that these two frameworks have a joint, complementary impact on changes in firm value upon cross-listing, based on the country-level Rule of Law metric. Conversely, we find that the positive association between the capital raising activity and changes in firm value upon cross-listing is less significant for countries from the most segmented markets. Finally, we find that analysts following [accuracy] is an effective reputational bonding mechanism for firms from the most [least] segmented markets primarily after cross-listing. This study sheds light on the complexity of the interplay between major valuation theories and different types of bonding mechanisms in the case of cross-listing.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Multinational Financial Management - Volume 39, March 2017, Pages 19-38
نویسندگان
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