Michal Barzuza

Signaling a Lemon: The Decision Not to Cross-List and High Private Benefits of Control

CO-AUTHORS David C. Smith and Elio Valladares
DATE
2007
 

Abstract

This paper studies the effects of firms' decision to cross-list on the frequency of controlling block sales by their domestic peers. Our results show that the announcement of cross-listing is associated with a positive and significant change in the frequency of sales among firms that choose not to cross-list. Though this paper focuses on cross-listing, our results have implications for other decisions at the midstream stage of a firm's life such as adopting corporate governance terms, distributing dividends and raising capital.

Citation

Michal Barzuza, David C. Smith & Elio Valladares, Signaling a Lemon: The Decision Not to Cross-List and High Private Benefits of Control (2007).
 

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