Legal System and Rule of Law Effects on US Cross-Listing to Bond by Emerging-Market Firms

Author

Paul M. Vaaler, Tufts University
Burkhard N. Schrage, Singapore Management UniversityFollow

Publication Type

Conference Proceeding Article

Publication Date

2007

Abstract

The article discusses the legal system and rule of law effects on United States businesses that cross-list their securities in overseas financial markets. Firms from emerging market countries with weak corporate governance regimes can internationalize their legal presence though this method, bonding with legal systems and enforcement policies in foreign corporate governance regimes that provide stronger investor protection. This has the result of increasing firm value by decreasing corporate misconduct, broadening the investor base, and lowering capital cost.

Discipline

Corporate Finance | Finance and Financial Management | Portfolio and Security Analysis

Research Areas

Finance

Publication

Academy of Management Proceedings

First Page

1

Last Page

6

ISSN

0065-0668

Identifier

10.5465/AMBPP.2007.26523155

Publisher

Academy of Management

Citation

Vaaler, Paul M. and Schrage, Burkhard N.. Legal System and Rule of Law Effects on US Cross-Listing to Bond by Emerging-Market Firms. (2007). Academy of Management Proceedings. 1-6.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/973