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1 – 10 of 19Yoon Koh, Seoki Lee, Sudipta Basu and Wesley S. Roehl
– The purpose of this study is to identify determinants of involuntary cross-listing (CL) of US restaurant companies on the Frankfurt Stock Exchange (FSE).
Abstract
Purpose
The purpose of this study is to identify determinants of involuntary cross-listing (CL) of US restaurant companies on the Frankfurt Stock Exchange (FSE).
Design/methodology/approach
The study utilizes a mixed method design with an interview and a pooled logistic regression analysis with panel dataset using the company-clustered standard error to develop and test the hypotheses.
Findings
The empirical investigation identified determinants of involuntary CL by examining ten factors, including size, firm growth opportunities, leverage, financial flexibility, international operation, profitability, overall German economic condition, industry growth opportunities, restaurant type, and local operation. The study found three determinants – large size, favorable economic condition in Germany and positive industry growth opportunities – utilizing the sample that covers the entire periods of involuntary CL of US restaurant companies on the FSE.
Originality/value
This paper uncovers the phenomenon of involuntary CL, which many stock exchanges have strategically adopted by simplifying listing requirements for companies already listed in other stock markets, focusing on US restaurant companies. The number of involuntarily cross-listed US restaurant companies greatly increased to 50 percent of domestically listed US restaurant companies while those companies are largely unaware of the phenomenon. The research advances understanding of involuntary CLs, which previously received little attention.
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The purpose of this paper is to examine two channels through which accounting standard differences could affect cross-listing: compliance costs and/or comparability benefits.
Abstract
Purpose
The purpose of this paper is to examine two channels through which accounting standard differences could affect cross-listing: compliance costs and/or comparability benefits.
Design/methodology/approach
The authors use two settings to disentangle the two channels. First, financial reporting requirements are more stringent for cross-listings via direct listings than cross-listings via depositary receipts; as a result, the effect of compliance costs (if any) would be manifested differently in the two venues of cross-listings. Second, some host countries allow foreign firms to report under International Financial Reporting Standards (IFRS) without mandating IFRS for domestic firms; compared to host countries that mandate IFRS for both domestic and foreign firms, these IFRS-permitting countries provide a setting to test the importance of comparability benefits while holding constant compliance costs.
Findings
The authors find that prior to IFRS adoption, direct listings decrease with accounting standards differences between two countries while depositary receipts increase with such differences, consistent with the costs of complying with host country’s accounting standards affecting firms’ cross-listing decisions. After the harmonization of accounting standards, the authors find that IFRS-mandating host countries gain cross-listings from other IFRS-mandating jurisdictions, while IFRS-permitting countries do not experience such gains. These combined results suggest that accounting related compliance costs and comparability benefits both influence cross-listing decisions.
Originality/value
The paper employs unique settings that enable an in-depth examination of the role of compliance costs vs that of comparability benefits on cross-listing decisions. The settings employed by the authors allow them to disentangle the two channels and provide an important insight that accounting standard-related compliance costs and comparability benefits both affect cross-listing decisions.
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– The purpose of this paper is to document earnings management of Chinese firms.
Abstract
Purpose
The purpose of this paper is to document earnings management of Chinese firms.
Design/methodology/approach
The paper takes advantage of the introduction of stringent delisting requirements around 2000 that non-cross-listed firms with consecutive earnings losses for more than two years would be delisted from the mainland Chinese exchanges. The paper examines whether listed firms in Chinese market manage earnings to avoid listings. The paper also examines whether mainland Chinese firms cross-listed in Hong Kong exchanges manage earnings the same way. The measure for earnings management is derived from a kernel density estimate for the return on equity distribution, following Bollen and Pool (2009).
Findings
The paper finds that the new delisting threats induce rampant earnings management on mainland markets, and cross-listing in Hong Kong has a curbing effect on earnings management. The paper also finds that prices became less value relevant after the implementation of delisting regulations, and investors rationally discounted the reliability of earnings announcements in China. Such market responses were absent for cross-listed firms in Hong Kong.
Originality/value
There is little conclusive evidence about whether cross-listing in a non-US market has a curbing effect on earnings management. The paper contributes to this literature by using this unique exogenous policy change in China and following a difference-in-difference approach in identifying the potential curbing effect. The particular measure adapted from Bollen and Pool (2009) utilizes information of the whole distribution of return on equity, thus extends earlier crude comparison of nearest two bars around zero and partially deals with the potential endogeneity problem.
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Somnath Das, Shahrokh M. Saudagaran and Ranjan Sinha
A number of US firms voluntarily de‐listed their stock from the Tokyo Stock Exchange (TSE) during the years 1977–97. We examine changes in trading volume, return volatility and…
Abstract
A number of US firms voluntarily de‐listed their stock from the Tokyo Stock Exchange (TSE) during the years 1977–97. We examine changes in trading volume, return volatility and implicit bid‐ask spreads in the U.S. stock exchange surrounding the de‐listing, and find evidence of an increase both in trading volume and bid‐ask spreads, particularly when the analysis is conditioned upon (a) trading volume on the TSE prior to de‐listing and (b) whether the de‐listing firm had operations in Japan. We also examine the daily stock price movement of the de‐listed firms and find a significantly negative price movement at the time of the de‐listing announcement, and also around the actual date of de‐listing. The results suggest a negative price response reflecting both a temporary information effect and also a more permanent valuation effect. Preliminary tests suggest that the latter is not related to the decrease in liquidity.
R. Greg Bell, Abdul A. Rasheed and Sri Beldona
To date there is little understanding of the factors that impact the survival of foreign IPOs after they list on US stock exchanges. In this study, we examine how foreign IPO…
Abstract
To date there is little understanding of the factors that impact the survival of foreign IPOs after they list on US stock exchanges. In this study, we examine how foreign IPO survival is contingent on institutional factors associated with the firm’s home country. We also explore how corporate governance and organizational identity influence the survival of foreign IPOs in the United States. Results suggest that the US institutional environment supports foreign firms with more independent and professional leadership, and that knowledge-intense organizations have higher chances of long-term success after listing on US exchanges.
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Rubaya Rahat, Claudia Calle Müller and Mohamed ElZomor
Construction education rarely addressed the importance of disseminating knowledge on infrastructure equity, thus impeding progress toward creating equitable and sustainable…
Abstract
Purpose
Construction education rarely addressed the importance of disseminating knowledge on infrastructure equity, thus impeding progress toward creating equitable and sustainable developments. This study aims to investigate the existing sustainability courses under the American Council for Construction Education (ACCE) accredited construction management (CM) programs to examine the integration of infrastructure equity topics and assess improvement in CM students’ knowledge and awareness to address this issue through an intervention.
Design/methodology/approach
To achieve these objectives, this research reviewed the sustainability course descriptions of the ACCE-accredited undergraduate and graduate CM curricula. Furthermore, the study implemented a workshop within a CM sustainability course that taught the students about the key concepts of infrastructure equity as well as how to address this issue by leveraging the Envision infrastructure rating system.
Findings
The course review results showed that most sustainability courses lack topics such as infrastructure equity and social sustainability. Moreover, the analysis of pre- and postworkshop surveys indicated that guided training could improve the students’ understanding as well as boost their confidence to address and mitigate infrastructure inequity issues.
Originality/value
The findings of the study are valuable for increasing awareness of infrastructure equity and facilitating the future construction workforce with the required expertise to develop equitable infrastructure systems.
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Subhash Abhayawansa, James Guthrie and Cristiana Bernardi
Romie Frederick Littrell and Andy Bertsch
The purpose of this paper is to address issues relating to the United Nations Millennium Development Goals (UNMDG) in the Middle East, analysing socio‐cultural issues having…
Abstract
Purpose
The purpose of this paper is to address issues relating to the United Nations Millennium Development Goals (UNMDG) in the Middle East, analysing socio‐cultural issues having direct relevance to the region's progress toward “Promote Gender Equality and Empower Women”.
Design/methodology/approach
The authors employ meta‐analyses with data from the United Nations, the Arab Human Development Report, and various sources of measurement of national means for Hofstede's five‐dimensional model of cultural value.
Findings
The authors find that the percentage of women in employment, excluding the agricultural sector, in their sample of Middle East countries has declined since 2000, while in the samples of other Muslim‐majority and all other countries the percentage employed has increased.
Research limitations/implications
The limitations of the authors' research are that complete sets of data for women in employment are not available for all years for all countries in their samples.
Practical implications
Implications for practice for governments and businesses in Middle East countries are that women are a valuable economic resource which is being excluded from contribution and for the past decade the change in the Middle East has been in a negative direction.
Social implications
The economic contributions and rights of women in the Middle East lag behind most of the developed and developing nations, including other Muslim‐majority nations.
Originality/value
This study provides empirical evidence from publicly available data concerning the employment status of women in Middle Eastern nations. The authors found no similar empirical studies in the literature. The study is of value to planners and policy‐makers in business, government, and non‐governmental organisations.
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David Hay, Elizabeth Rainsbury and Debbie Van Dyk
The purpose of this study is to examine the cost of the introduction of independent audit inspections in New Zealand.
Abstract
Purpose
The purpose of this study is to examine the cost of the introduction of independent audit inspections in New Zealand.
Design/methodology/approach
The research is conducted using audit fee data from New Zealand and examines the overall impact of the reforms on the cost imposed on auditees.
Findings
The findings show that there was no general increase in audit fees but a significant increase in audit fees for small listed companies compared to audit fees for unlisted companies and large listed companies.
Practical implications
The practical implications of this study suggest that the introduction of independent inspections led to increased costs for some clients, particularly smaller listed companies, and that audit firms were able to pass on these costs to their clients. These results have important implications for policymakers and auditors alike.
Originality/value
This study provides new insights into the cost of the introduction of independent audit inspections, which have been the subject of ongoing criticisms and recommendations for improvement.
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