Do Cross-Border Listing Firms Manage Earnings or Seize a Window of Opportunity?

2007 ◽  
Vol 82 (4) ◽  
pp. 1009-1030 ◽  
Author(s):  
Gordian A. Ndubizu
Keyword(s):  
Earnings Management ◽  
Home Country ◽  
Cash Flows ◽  
Equity Capital ◽  
Stock Exchanges ◽  
Window Of Opportunity ◽  
Main Motivation ◽  
Cross Border ◽  
Cross Listing ◽  
And Performance

Firms raising new equity capital at cross-listing (IPO) and those crosslisting existing home-country public shares (non-IPO) benefit from earnings that are high when they cross-list on U.S. stock exchanges. IPO firms have greater benefits than non-IPO firms because they receive cash infusion at listing. I find that performance (ROA) and cash flows peak at cross-listing period for all cross-border firms. Using a matched-firm research design to control for industry and performance, the results suggest that both IPO and non-IPO firms time cross-listing when performance is peaking (seize a window of opportunity). Further tests investigate whether IPO and non-IPO firms differ in their incentives to engage in earnings management at the time of cross-listing. The results suggest that both appear to engage in the same level of earnings management at the time of cross-listing. This suggests that incentives to boost earnings to obtain higher cash infusion are not the main motivation for the earnings management observed. Other incentives, such as greater investor recognition could be a stronger motivation.

scholarly journals The Cost of Equity Capital on Developing Equity Markets: Estimations for Selected Slovene Companies

2010 ◽  
Vol 5 (1) ◽  
pp. 67-74
Author(s):  
Igor Stubelj
Keyword(s):  
Equity Markets ◽  
Capital Budgeting ◽  
Cash Flows ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Publicly Traded Companies ◽  
And Performance ◽  
The Cost ◽  
Free Cash Flows

The Cost of Equity Capital on Developing Equity Markets: Estimations for Selected Slovene CompaniesThe article sheds light on the estimation of the cost of equity capital on a developing equity market. The cost of equity is important; it is crucial in capital budgeting decisions and performance evaluation. It determines the minimum yield the investors require on the invested capital and we use it as a discount rate to calculate the present value of the expected free cash flows to equity. The aim of this paper is to tackle the estimation of the cost of equity capital on developing markets with the example of estimation for ten Slovene publicly traded companies. The estimated cost of capital for the selected Slovene companies is between 9,7% and 13,7%.

Cross-border Distribution of Collective Investment Products in the EU

2018 ◽  
Author(s):  
Matteo Gargantini ◽  
Carmine Di Noia ◽  
Georgios Dimitropoulos
Keyword(s):  
Home Country ◽  
Legal Framework ◽  
Business Rules ◽  
Investment Funds ◽  
Legal Rules ◽  
Section 8 ◽  
Cross Border ◽  
Product Regulation ◽  
Supervisory Practices ◽  
The Eu

This chapter analyzes the current regulatory framework for cross-border distribution of investment funds and submits some proposals to improve it. The chapter is organized as follows. Section 2 provides a schematic description of the legal taxonomy for collective investment schemes. Section 3 addresses the EU disclosure regimes that apply to the distribution of various types of investment funds. Sections 4 and 5 consider conduct-of-business rules and, respectively, the legal framework for the allocation of supervisory powers on product regulation when fund units are distributed in more than one country. Section 6 provides some data that help assess the performance of the current framework for cross-border distribution. It then analyzes some of the residual legal rules and supervisory practices that still make cross-border distributions of funds more burdensome than purely national distributions, whether these restrictions are set forth in the country where investors are domiciled (Section 7) or in the fund's home country (Section 8).

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