Investor Protection, Investment Efficiency and Value

Download or read book Investor Protection, Investment Efficiency and Value written by Fan He and published by . This book was released on 2016 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the impact of improved investor protection due to cross-listing on foreign firms' investment decisions to explore the channels through which cross-listing increases foreign firms' value. While we find that cross-listing increases firms' capital expenditures and M&A activities, cross-listed firms also invest more in R&D, make better acquisition decisions, and have higher profitability compared to non-cross-listed firms. Moreover, cross-listing is associated with better cash utilization by foreign firms' for investments. These improvements in investments and cash utilization are more pronounced for firms cross-listed on U.S. exchanges and for firms from countries with weaker investor protection laws.