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Firm value, the Sarbanes-Oxley Act and cross-listing in the U.S., Germany and Hong Kong destinations

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  • Bianconi, Marcelo
  • Chen, Richard
  • Yoshino, Joe A.

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 and 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 many lower valued firms destined to Hong Kong, thus crowding out the market where regulation is more stringent.

Suggested Citation

  • Bianconi, Marcelo & Chen, Richard & Yoshino, Joe A., 2013. "Firm value, the Sarbanes-Oxley Act and cross-listing in the U.S., Germany and Hong Kong destinations," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 25-44.
    • Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:25-44
    DOI: 10.1016/j.najef.2012.07.002
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    Cited by:

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    6. Papanastasopoulos, Georgios A., 2015. "Accruals, growth, accounting distortions and stock returns: The case of FRS3 in the UK," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 39-54.

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    More about this item

    Keywords

    Cross-listing; Sarbanes-Oxley; Dynamic panel data; Treatment effects;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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