Racing towards the Top?: The Impact of Cross-Listings and Stock Market Competition on International Corporate Governance

The role of information and financial reporting in corporate governance and debt contracting

“…These differences are attributable to both "innate" differences in the firms and the likely perceived benefits of cross-listing. See Coffee (2002) for a more thorough discussion of the literature examining the effects of cross-listing. 56 The data supporting these statistics comes from http://www.federalreserve.gov/econresdata/releases/corpsecure/ current.htm.…”

Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects

“…Demirguc-Kunt and Maksimovic (1998) utilize the International Company Risk Guide's Law and Order indicators of the effectiveness of a country's legal system rather than those employed by La Porta, et al (1998 to show that countries with appropriate legal systems offer greater protection of long-term external financing and are able to grow faster. Scholars have observed that AngloSaxon legal systems do appear to provide stronger protection for shareholder rights (Coffee, 2002), and that financing activity is significantly reduced in countries with poor investor protection systems. Subsequent research lends support to these observations (Lins, Strickland and Zenner, 2004;Reese and Weisbach, 2002).…”

“…Some legal scholars suggest foreign firms that engage in the process of listing on U.S. stock exchanges commit themselves to respect minority investor rights and to provide fuller disclosure (Coffee, 2002). However, the legal environment surrounding foreign new issues is especially salient to investors in the U.S. and U.K. markets because it relates not only to minority investor rights, but also in the ability of investors to sue and enforce a legal judgment to recover all or a sizable portion of their investments.…”

A survey of enterprise reforms in China: The way forward

“…The empirical analysis of Hovey (2005b) found that generally offshore ownership has a positive influence on performance, although the results were not as compelling as might have been intuitively expected. According to theory (Merton, 1987;Coffee, 2002;Faff, Hodgson, & Saudagaran, 2002;Lang et. al., 2003;Moffett, Stonehill, & Eiteman, 2003), it is expected that firms that cross-list on Hong Kong or New York stock exchanges, would have superior performance due to improved disclosure and monitoring, and ultimately enhanced value.…”