Firm Value, the Sarbanes-Oxley Act and Cross-Listing in the US, Germany and Hong Kong Destinations

38 Pages Posted: 15 Apr 2009 Last revised: 14 Feb 2011

See all articles by Marcelo Bianconi

Marcelo Bianconi

Tufts University - Department of Economics

Richard Chen

United States Agency for International Development (USAID)

Joe Akira Yoshino

University of São Paulo (USP) - Department of Economics

Date Written: November 10, 2010

Abstract

This paper presents empirical evidence on the effects of the Sarbanes-Oxley Act of 2002 on the value of firms and on the cross-listing choice of firms destined to three major markets in North America, Asia and Europe. We use dynamic panel data methods and treatment effects methods to find that Sarbanes-Oxley has had a negative impact on the value of firms worldwide. Our evidence indicates that Sox may have segmented markets, with fewer and more valuable firms seeking the more stringent US market; but many more lower valued firms destined to Hong Kong and Germany seeking potential signaling benefits of crosslisting.

Keywords: Cross-listing, Sarbanes-Oxley, dynamic panel data, treatment effects

JEL Classification: G0, G3

Suggested Citation

Bianconi, Marcelo and Chen, Richard and Yoshino, Joe Akira, Firm Value, the Sarbanes-Oxley Act and Cross-Listing in the US, Germany and Hong Kong Destinations (November 10, 2010). Available at SSRN: https://ssrn.com/abstract=1373897 or http://dx.doi.org/10.2139/ssrn.1373897

Marcelo Bianconi (Contact Author)

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States
617-627-2677 (Phone)

HOME PAGE: http://www.tufts.edu/~mbiancon

Richard Chen

United States Agency for International Development (USAID) ( email )

1300 Pennsylvania Avenue NW
Washington, DC 20577
United States

Joe Akira Yoshino

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil

HOME PAGE: http://www.usp.br/feaecon/perfil.php?i=10&u=57

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