scholarly journals International Cross-Listing and the Bonding Hypothesis

2004 ◽  
Author(s):  
Michael R. King ◽  
Dan Segal
Keyword(s):  
Cross Listing ◽  
Bonding Hypothesis

scholarly journals Relative Governance and the Global Cross-Listing Decision: Extending the Bonding Hypothesis

2017 ◽  
Vol 7 (1) ◽  
pp. 82
Author(s):  
Stephen Paul Ferris ◽  
Min Yu Liao
Keyword(s):  
Host Country ◽  
Home Country ◽  
Private Benefits ◽  
Private Benefits Of Control ◽  
Cross Listing ◽  
Bonding Hypothesis ◽  
Investor Protections ◽  
The U.S ◽  
Better Than

Using a comprehensive set of cross-listings, we extend the bonding hypothesis by developing what we term as the  relative bonding hypothesis. We hypothesize that firms seek the advantages of stronger investor protections by listing in countries whose governance is relatively better than its own. This means that firms can achieve bonding without listing in the U.S and that the governance advantages of bonding are not only for ADRs. We find that firms are more likely to choose a cross-listing destination if the host country has better governance than the home country, except those firms from countries whose managers enjoy greater private benefits of control. We also find that there is valuation premium even when cross-listing occurs  outside of the U.S. The premia are even stronger if the host country has better governance than that of the home country. We conclude that although bonding might explain the existence of ADRs, relative bonding helps to explain the extensive cross-listing which occurs outside of the U.S. 

Cross-Listing, Bonding Hypothesis and Corporate Governance

2007 ◽  
Vol 34 (7-8) ◽  
pp. 1281-1306 ◽  
Author(s):  
Andreas Charitou ◽  
Christodoulos Louca ◽  
Stelios Panayides
Keyword(s):  
Corporate Governance ◽  
Cross Listing ◽  
Bonding Hypothesis

The Value of Information in Cross-Listing

2008 ◽  
Author(s):  
Arturo Bris ◽  
Salvatore Cantale ◽  
Emir Hrnjic ◽  
George P. Nishiotis
Keyword(s):  
Value Of Information ◽  
Cross Listing
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