Publication Type

Conference Paper

Version

Preprint

Publication Date

12-2014

Abstract

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.

Keywords

Cross-listings, Cash savings, International study

Discipline

Accounting | Corporate Finance

Research Areas

Corporate Governance, Auditing and Risk Management

Publication

Auckland Finance Meeting 2014, December 18-20

First Page

1

Last Page

50

City or Country

Auckland

Copyright Owner and License

Author

Additional URL

https://acfr.aut.ac.nz/__data/assets/pdf_file/0010/29863/480264-ADR_Manuscript.pdf

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