earticle

영어

This paper examines the firms’ foreign listing location decision, using cross-listings data from 28 origin countries to 9 destinations during 1994- 2008, Our main finding is that firms are more likely to choose crosslisting destinations that are less strict on regulating self-dealing or exhibit higher block premiums relative to the origin country, and that this tendency is more pronounced after Sarbanes-Oxley in 2002. Moreover, firm characteristics that are positively correlated with likelihood of a U.S. cross-listing, such as high-tech or high Tobin’s q, are also positively correlated with likelihood of cross-listings in Germany or Switzerland both of which exhibit low investor protection. These findings are in contrast to the widely accepted ‘bonding’ hypothesis that firms choose to cross-list to voluntarily commit themselves to higher disclosure standards.