Cross-listing, investment sensitivity to stock price, and the learning hypothesis

Review of Financial Studies

Volumn 25, Issue 11, 2012, Pages 3305-3350

  Foucault, Thierry ^a   Frésard, Laurent ^b  

^a HEC PARIS   (France)

^b UNIVERSITY OF MARYLAND   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84867828107     PISSN: 08939454     EISSN: 14657368     Source Type: Journal    
DOI: 10.1093/rfs/hhs093     Document Type: Review

References (75)

1. Aggarwal, R., I. Erel, R. Stulz, and R.Williamson. 2010. Differences in Governance Practices between U.S. and Foreign Firms: Measurement, Causes, and Consequences. Review of Financial Studies 23:31-69.
2. Aggarwal, R., I. Erel, M. Ferreira, and P. Matos. 2011. Does Governance Travel around the World? Evidence from Institutional Investors. Journal of Financial Economics 100:154-81.
3. Ammer, J., S. Holland, D. Smith, and F. Warnock. 2012. U.S. International Equity Investment. NBER Working Paper No. 17839.
4. Bailey, W., G. A. Karolyi, and C. Salva. 2006. The Economic Consequences of Increased Disclosure: Evidence from International Cross-Listings. Journal of Financial Economics 81:175-213. (Pubitemid 43899440)
5. Baker, M., J. Stein, and J. Wurgler. 2003. When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms. Quarterly Journal of Economics 118:969-1005. (Pubitemid 37052880)
6. Bakke, T., and T. M. Whited. 2010. Which Firms Follow the Market? An Analysis of Corporate Investment Decisions. Review of Financial Studies 23:1941-80.
7. Ball, R. T., L. Hail, and F. P. Vasvari. 2009. Equity Cross-Listings in the U.S. and the Price of Debt. Working Paper, University of Chicago.
8. Barro, R. J. 1990. The Stock Market and Investment. Review of Financial Studies 3:115-31.
9. Baruch, S., G.A. Karolyi, and M. L. Lemmon. 2007. Multimarket Trading and Liquidity: Theory and Evidence. Journal of Finance 62:2169-200.
10. Bekaert, G., C. R. Harvey, and C. Lundblad. 2007. Liquidity and Expected Returns: Lessons from Emerging Markets. Review of Financial Studies 20:1783-831.
11. Blanchard, O. J., C. Rhee, and L. H. Summers. 1993. The Stock Market, Profit and Investment. Quarterly Journal of Economics 118:115-34.
12. Bohren, O., I. Cooper, and R. Priestley. 2009. Real Investment, Economic Efficiency and Managerial Entrenchement.Working Paper, BI Oslo.
13. Bond, P., A. Edmans, and I. Goldstein. Forthcoming. The Real Effects of Financial Markets. Annual Review of Financial Economics.
14. Campello, M., and J. Graham. Forthcoming. Do Stock Prices Influence Corporate Decisions? Evidence from the Technology Bubble. Journal of Financial Economics.
15. Cantale, S. 1996. The Choice of a Foreign Market as a Signal.Working Paper, Tulane University.
16. Charitou, A., and C. Louca. 2009. Cross-Listing and Operating Performance: Evidence from Exchange-Listed American Depositary Receipts. Journal of Business Finance & Accounting 36:99-129.
17. Chemmanur, T., and P. Fulghieri. 2006. Competition and Cooperation among Exchanges: A Theory of Cross-Listing and Endogenous Listing Standards. Journal of Financial Economics 82:455-89. (Pubitemid 44488059)
18. Chen, Q., I. Goldstein, and W. Jiang. 2007. Price Informativeness and Investment Sensitivity to Stock Price. Review of Financial Studies 20:115-47.
19. Coffee, J. C., Jr. 1999. The Future as History: The Prospects for Global Convergence in Corporate Governance and Its Implications. Northwestern University Law Review 93:641-708.
20. Dasgupta, S., J. Gan, and N. Gao. 2010. Transparency, Stock Return Synchronicity, and the Informativeness of Stock Prices: Theory and Evidence. Journal of Financial and Quantitative Analysis 45:1189-220.
21. Doidge, C., G.A. Karolyi, and R. M. Stulz. 2004. WhyAre Foreign Firms Listed in the U.S.Worth More? Journal of Financial Economics 71:205-38. (Pubitemid 38065258)
22. - 2007. Why Do Countries Matter So Much for Corporate Governance? Journal of Financial Economics 86:1-39.
23. - 2009. Has NewYork Become Less Competitive in Global Markets? Evaluating Foreign Listing Choices Over Time. Journal of Financial Economics 91:253-77.
24. Doidge, C., G. A. Karolyi, and R. M. Stulz. 2010. Why Do Foreign Firms Leave U.S. Equity Markets? Journal of Finance 65:1507-554.
25. Doidge, C., G.A. Karolyi, K.V. Lins, D. P. Miller, and R. M. Stulz. 2009. Private Benefits of Control, Ownership, and the Cross-Listing Decision. Journal of Finance 64:425-66.
26. Dow, J., and G. Gorton. 1997. Stock Market Efficiency and Economic Efficiency: Is There a Connection? Journal of Finance 52:1087-129. (Pubitemid 127344959)
27. Dow J., I. Goldstein, and A. Gümbel. 2010. Incentives for Information Production in Markets Where Prices Affect Real Investment.Working Paper,Wharton School.
28. Durnev,A. 2010. The Real Effects of Political Uncertainty: Elections and Investment Sensitivity to Stock Prices. Working Paper, McGill University.
29. Durnev, A., R. Morck, and B. Yeung. 2004. Value-Enhancing Capital Budgeting and Firm-Specific Return Variation. Journal of Finance 59:65-105. (Pubitemid 38389591)
30. Djankov, S., R. La Porta, F. Lopez-de-Silanes, and A. Shleifer. 2008. The Law and Economics of Self-Dealing. Journal of Financial Economics 88:430-65.
31. Easley, D., N. Kiefer, and M. O'Hara. 1997. One Day in the Life of a Very Common Stock. Review of Financial Studies 10:805-35. (Pubitemid 127348430)
32. Easley, D., M. O'Hara, and J. Paperman. 1998. Financial Analysts and Information Based Trades. Journal of Financial Markets 1:175-201. (Pubitemid 128338851)
33. Fama, E. F., and J. D. MacBeth. 1973. Risk, Returns, and Equilibrium: Empirical Tests. Journal of Political Economy 81:607-638.
34. Fazzari, S. M., R. G. Hubbard, and B. C. Petersen. 1988. Financing Constraints and Corporate Investment. Brookings Papers on Economic Activity 1:141-95.
35. Foerster, S. R., and G. A. Karolyi. 1999. The Effects of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the U.S. Journal of Finance 54:981-1014.
36. Foucault,T., andT. Gehrig. 2008. Stock Price Informativeness, Cross-Listings, and Investment Decisions. Journal of Financial Economics 88:146-68.
37. Fernandes, N. G., and M. A. Ferreira. 2008. Does International Cross-Listing Improve the Information Environment? Journal of Financial Economics 88:216-44.
38. Frésard, L. 2011. Cash Savings and Stock Price Informativeness. Review of Finance.Advance Access published June 2, 2011. doi:10.1093/rof/rfr004.
39. Frésard, L., and C. Salva. 2010. The Value of Excess Cash and Corporate Governance: Evidence from U.S. Cross-Listings. Journal of Financial Economics 98:359-84.
40. Fuerst, O. 1998. A Theoretical Analysis of the Investor Protection Regulations Argument for Global Listing of Stocks.Working Paper, Yale University.
41. Gagnon, L., and G. A. Karolyi. Forthcoming. Do International Cross-Listings Still Matter? In T. Beck, S. Schmukler, and S. Claessens (eds.), Evidence on Financial Globalization and Crises. Amsterdam: Elsevier.
42. Goldstein, I., and A. Gümbel. 2008. Manipulation and the Allocational Role of Prices. Review of Economic Studies 75:133-64. (Pubitemid 350238598)
43. Hail, L., and C. Leuz. 2009. Cost of Capital Effects and Changes in Growth Expectations around U.S. Cross-Listings. Journal of Financial Economics 93:428-54.
44. Hadlock, C. J., and J. R. Pierce. 2010. New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index. Review of Financial Studies 23:1909-40.
45. Halling, M., M. Pagano, O. Randl, and J. Zechner. 2008. Where Is the Market? Evidence from Cross-Listings in the United States. Review of Financial Studies 21:725-59.
46. Harris, J. H., V. Panchapagesan, and I. M. Werner. 2008. Off But Not Gone: A Study of Nasdaq Delistings. Working Paper, Ohio State University.
47. Heckman, J. 1979. Sample Selection Bias as a Specification Error. Econometrica 47:153-61.
48. Hennessy, C. 2009. Security Design, Liquidity, and the Informational Role of Stock Prices. Working Paper, London Business School.
49. Jin, L., and S. C. Myers. 2006. R2 around theWorld: NewTheory and NewTests. Journal of Financial Economics 79:257-92.
50. Karolyi, G. A. 2010. Corporate Governance, Agency Problems and International Cross-Listings: A Defense of the Bonding Hypothesis.Working Paper, Cornell University.
51. Khanna, T., K. G. Palepu, and S. Srinivasan. 2004. Disclosure Practices of Foreign Companies Interacting with U.S. Markets. Journal of Accounting Research 42:475-508. (Pubitemid 38681422)
52. Khurana, I., X. Martin, and R. Periera. 2008. Cross-Listing and Firm Growth. Review of Finance 12:293-322.
53. King, M. R., and D. Segal. 2009. The Long-Term Effect of Cross-Listings, Investor Recognition, and Ownership Structure on Valuation. Review of Financial Studies 22:2393-421.
54. Kumar, P., and L. Ramchand. 2008. Takeovers, Market Monitoring and International Corporate Governance. Rand Journal of Economics 39:850-74.
55. Lang, M. H., K. V. Lins, and D. P. Miller. 2003. ADRs, Analysts, and Accuracy: Does Cross Listing in the U.S. Improve a Firm's Information Environment and Increase Market Value? Journal of Accounting Research 41:317-46.
56. La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R.W. Vishny. 1997. Legal Determinants of External Finance. Journal of Finance 52:1131-50.
57. Lel, U., and D. P. Miller. 2009. International Cross-Listing, Firm Performance, and Top Management Turnover: ATest of the Bonding Hypothesis. Journal of Finance 64:1897-937.
58. Li, K., and N. Prabhala. 2007. Self-Selection Models in Corporate Finance. In B. Espen Eckbo (ed.), Handbook of Empirical Corporate Finance, vol. 1. Amsterdam:Elsevier.
59. Lins, K.V., D. Strickland, and M. Zenner. 2005. Do Non-U.S. Firms Issue Equity on U.S. Stock Exchanges to Relax Capital Constraints? Journal of Financial and Quantitative Analysis 40:109-33. (Pubitemid 40427500)
60. Luo, Y. 2005. Do Insiders Learn from Outsiders? Evidence from Mergers and Acquisitions. Journal of Finance 60:1951-82. (Pubitemid 41205010)
61. Moel, A. 1998. The Role of Information Disclosure on Stock Market Listing Decisions.Working Paper, Harvard University.
62. Morck, R., A. Shleifer, and R. W. Vishny. 1990. The Stock Market and Investment: Is the Market a Sideshow? Brookings Papers on Economic Activity 2:157-215.
63. Pagano, M.,A. Roëll, and J. Zechner. 2002. The Geography of Equity Listing: Why Do Companies List Abroad? Journal of Finance 57:2561-694.
64. Petersen, M. A. 2009. Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches. Review of Financial Studies 22:435-80.
65. Rajan, R., and L. Zingales. 1998. Financial Dependence and Growth. American Economic Review 88:559-86. (Pubitemid 128453615)
66. Reese, W. A. J., and M. S. Weisbach. 2002. Protection of Minority Shareholder Interests, Cross-Listings in the United States and Subsequent Equity Offerings. Journal of Financial Economics 66:65-104.
67. Roberts, M. R., and T. M. Whited. 2011. Endogeneity in Empirical Corporate Finance. In G. M. Constantinides, R. M. Stulz, and M. Harris (eds.), Handbook of the Economics of Finance, vol. 2. Amsterdam: Elsevier.
68. Roll, R. 1988. R2. Journal of Finance 43:541-66.
69. Sarkissian, S., and M. J. Schill. 2004. The Overseas Listing Decision: New Evidence of Proximity Preference. Review of Financial Studies 17:769-809. (Pubitemid 39159659)
70. - 2010. The Nature of the Foreign Listing Premium: A Cross-Country Examination. Working Paper, McGill University.
71. Stein, J. 1996. Rational Capital Budgeting in an IrrationalWorld. Journal of Business 69:429-55. (Pubitemid 126314347)
72. Stulz, R. M. 1999. Globalization, Corporate Finance, and the Cost of Capital. Journal of Corporate Finance 12:8-25.
73. Subrahmanyam, A., and S. Titman. 1999. The Going-Public Decision and the Development and Financial Markets. Journal of Finance 54:1045-82.
74. Whited, T. M., and G.Wu. 2006. Financial Constraints Risk. Review of Financial Studies 19:531-59. (Pubitemid 43551207)
75. Zingales, L. 2007. Is the U.S. Capital Market Losing Its Competitive Edge? Working Paper, University of Chicago.