Investor Protection and Cash Holdings: Evidence from U.S. Cross-Listing

This paper examines (i) whether the level of firms’ cash holdings differ depending on the strength of investor protection, (ii) whether excess cash holdings are valued more with better investor protection, and (iii) whether cross-listed firms that improve investor protection through “bonding” hold relatively more cash than non-cross-listed firms. We analyze 1405 ADR firms and their corresponding matched firms from 39 different countries and document that ADR firms have significantly higher cash holdings relative to their non-cross-listed peers, especially in recent years. The increase in cash holdings is much higher for emerging market firms because of their transition from particularly poor home country investor protection and accounting standards before cross-listing to much higher standards after cross-listing. In addition, firms with level III ADR listing, which represents the strongest investor protection, have higher cash holdings relative to other types of ADR firms

The Impact of Gender on Voluntary and Involuntary Executive Departure

We examine the frequency and conditions of executive departure from S&P 1500 firms. Based upon published news reports, we find that female executives are more likely than male executives to depart their positions voluntarily and involuntarily in the presence of controls for firm performance, firm governance, and human capital. We also find that women are less likely than men to depart voluntarily as firm size increases or board size decreases but more likely to be dismissed as the board becomes more male dominated

Investor protection and cash holdings: Evidence from US cross-listing

This paper examines (i) whether the level of firms\u27 cash holdings differ depending on the strength of investor protection, (ii) whether excess cash holdings are valued more with better investor protection, and (iii) whether cross-listed firms that improve investor protection through bonding hold relatively more cash than non-cross-listed firms. We analyze 1405 ADR firms and their corresponding matched firms from 39 different countries and document that ADR firms have significantly higher cash holdings relative to their non-cross-listed peers, especially in recent years. The increase in cash holdings is much higher for emerging market firms because of their transition from particularly poor home country investor protection and accounting standards before cross-listing to much higher standards after cross-listing. In addition, firms with level III ADR listing, which represents the strongest investor protection, have higher cash holdings relative to other types of ADR firms. © 2012 Elsevier B.V

IS A US IPO A SENSIBLE OPTION FOR ASIAN VENTURES?

U.S.-based stock exchanges (e.g., NASDAQ) continue to be the financial markets of choice for IPOs among Asian entrepreneurs, although many Asian firms, upon listing, have performed poorly. This paper surveys the existing literature and summarizes the main advantages and disadvantages associated with a U.S. listing by an Asia-based venture. The paper also examines the post-IPO experience of four Asian companies which illuminate issues that are particularly relevant for Asian entrepreneurs. Our findings indicate that a U.S. listing can provide Asian companies with increased liquidity, visibility, and business opportunities. But being public in the U.S. brings disadvantages that include disclosure and reporting requirements, risk of lawsuits, and additional expenses. Our case studies reveal that successful U.S. listings require Asian firms to fully commit to transparency and investor relations programs. Based on our findings, we develop practical guidelines as to when a U.S. IPO may be sensible for an Asian venture.