• Media type: Report; E-Book
  • Title: Cross listing and firm value: corporate governance or market segmentation? An empirical study of the stock market
  • Contributor: Ji, Gang [Author]
  • Published: Helsinki: Bank of Finland, Institute for Economies in Transition (BOFIT), 2005
  • Language: English
  • ISBN: 952-462-794-9
  • Keywords: corporate governance ; China ; listing
  • Origination:
  • Footnote: Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
  • Description: This study investigates the economic consequences of cross-listing on the Chinese stock market.We argue that by adopting a higher disclosure standard through cross- listing firms voluntarily commit themselves to reducing information asymmetry.As a result, cross-listed firms are able to benefit from growth opportunities with less appropriated cash flow and lower cost of capital. The empirical evidence shows that cross-listed firms indeed command higher valuations than their non-cross-listed counterparts, after controlling for certain firm-specific attributes.This lends support to the corporate governance hypothesis of cross-listing on the Chinese stock market.The study also argues that an overall upgrading of accounting standards cannot substitute for the cross-listing mechanism.
  • Access State: Open Access