Shell games: On the value of shell companies

Floros, Ioannis V.; Sapp, Travis

doi:10.1016/j.jcorpfin.2011.03.004

Cited by 83 publications

(67 citation statements)

References 36 publications

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“…If Chinese firms benefitted as much as other firms, they can take capital gains profits of up to 50% quickly from listing abroad (Floros and Sapp, 2011;Brown et al, 2010).…”

Section: Background: Chinese Firms' Corporate Governance and Offshorementioning

confidence: 99%

Do Corporate Governance Practices in One Jurisdiction Affect Another One? Lessons from the Panama Papers

Michael

Goo

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractTo what extent do corporate governance practices in one jurisdiction affect another? In this paper, we look at the way that Hong Kong's and the Mainland's corporate governance practices have co-evolved, along with offshore incorporations from both places. Drawing on empirical illustrations of the data using analytical techniques like differential equations and Fourier Spectral Analysis, we find a strong relationship across time between changes in corporate governance practices in both jurisdictions as well as offshore incorporations. Our data also support the idea of a theory-free equilibrium level of corporate governance (determined by market participants' own behaviour rather than by a theory-laden econometric model). We show that lethargy likely explains the persistence of corporate governance practices in both places, with innovations in one place correlating with innovations in the other. Such work clearly implies that corporate governance improvements in one place can help encourage such improvements in other markets which have not adopted laws aimed at improving corporate governance.

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“…If Chinese firms benefitted as much as other firms, they can take capital gains profits of up to 50% quickly from listing abroad (Floros and Sapp, 2011;Brown et al, 2010).…”

Section: Background: Chinese Firms' Corporate Governance and Offshorementioning

confidence: 99%

Do Corporate Governance Practices in One Jurisdiction Affect Another One? Lessons from the Panama Papers

Michael

Goo

2017

SSRN Journal

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“…Sjostrom (2008) [12], [13], [6]. We compare these Chinese RM companies' characteristics and performances to three benchmarks.…”

Section: A Data Sourcesmentioning

confidence: 99%

“…The literature identifies many other RM advantages, to include: 1) the speed to complete, which is normally under six months compared to IPOs which can years [4], 2) significantly less cost, avoiding most underwriter and investment bank fees [4], [5], and 3) the RM process avoids much of the SEC scrutiny compared to alternatives [6].…”

Section: Introductionmentioning

confidence: 99%

A Study of Chinese Reverse Mergers in United States Capital Markets

DuVal

Quilliam

2015

GSTF J Bus Rev

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“…7 The sale of shares by the underwriters in excess of those shares initially available. 8 Berger (2008), Hale (2007), Lewellen (2009), Floros andTravis (2011). We document changes in the corporate design of SPACs and explain their evolution.…”

Section: Introductionmentioning

confidence: 99%