Capital Structure Changes around Cross-Listings

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. ABSTRACTPurpose À We examine what changes, if any, firms are making to their capital structure around the time they cross-list because both of these affect a firm's corporate governance. Cross-listing requires firms to follow SEC rules and regulations, which helps improve the firm governance. A firm's capital structure, specifically the use of debt, is an effective way to mitigate the conflict between managers and shareholders by reducing the cash available to managers. We examine whether these governance mechanisms are complimentary or being used as substitutes by crosslisting firms.Methodology À We compare the capital structures of Level II and Level III cross-listing firms from both civil law and common law countries in the three years before and the three years after cross-listing.Findings À We show firms are significantly reducing their debt to equity ratio after the cross-listing. This reduction is shown for both Level II and Level III firms; however, it is primarily seen in civil law countries.Practical implications À The corporate governance improvement firms recognize by cross-listing is partially offset by the reduced use of debt

Hipótese upstream-downstream: uma análise internacional e regional dos efeitos da expansão dos negócios no nível de endividamento das empresas

“…Pelo fato da internacionalização não ser uma estratégia única de expansão, entender suas múltiplas dimensões e como metrificá-las não tem sido trivial. Uma das métricas mais utilizadas foi estabelecida pelas discussões entre Sullivan (1994), Ramaswamy, Kroeck e Renforth (1996) e Sullivan (1996) (Silveira, 2008;Dani, Almeida-Santos, Toledo Filho & Dos Santos, 2016) e internacionais (Liao & Tamm, 2014;Wang & Esqueda, 2014) estudaram a relação entre a emissão de ADRs e o endividamento. Por outra parte, a Hipótese Upstream-Downstream foi testada sob a ótica da internacionalização operacional por diversos autores tanto nacionais (Saito & Hiramoto, 2010;Pereira & Sheng, 2012) quanto internacionais (Singh & Nejadmalayeri, 2004;Mittoo & Zhang, 2008) em diferentes contextos, mas a Hipótese ainda não foi validada sob a ótica da internacionalização financeira nem considerando o uso da internacionalização operacional e financeira de maneira conjunta.…”