This paper examines foreign firms that are cross-listed on the U.S. stock exchanges and finds that they exhibit higher cash savings sensitivity to stock price than their non-cross-listed counterparts. This finding is robust even after controlling for alternative regression specifications and samples, country-level institutional infrastructures, different listing types, and the endogeneity of the cross-listing decision. Further cross-sectional tests reveal that the increase in cash savings sensitivity to stock price is more pronounced for cross-listed firms with stock prices that are more informative, which is consistent with the influence of the managerial learning channel. The empirical evidence sheds more light on the implications of the cross-listing decision for international firms’ corporate cash management policies.
Cross-listings, Cash savings, International study
Accounting | Corporate Finance
Corporate Governance, Auditing and Risk Management
Auckland Finance Meeting 2014, December 18-20
City or Country
Cross-Listings and Corporate Cash Savings: International Evidence. (2014). Auckland Finance Meeting 2014, December 18-20. 1-50. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/1404
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