Essays in emerging equity markets.
Item
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Title
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Essays in emerging equity markets.
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Identifier
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AAI3278421
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identifier
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3278421
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Creator
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Smirnova, Elena.
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Contributor
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Adviser: Kishore Tandon
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Date
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2007
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Language
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English
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Publisher
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City University of New York.
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Subject
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Business Administration, Management | Economics, Finance
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Abstract
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Previous studies on the effects of cross-listing on firm value have largely omitted companies domiciled in Central Europe and Russia due to data scarcity. In this paper, I seek to rectify this hiatus by examining valuation differences between companies that choose to cross-list their stocks in other markets through the issue of Depositary Receipts (DRs), and comparable firms from Central Europe and Russia that choose not to cross-list. The results herein indicate an average valuation premium of 20% in a sample of 43 companies domiciled in Hungary, the Czech Republic, Poland and Russia relative to 123 companies from the region that choose not to cross list. After controlling for country-level legal shareholder protection, and a host of country-specific micro- and macro-economic variables, the results reveal that firms that have less access to sound money in domestic markets and firms from countries with large government sectors are more likely to issue a depositary receipt. These companies also realize a higher market value, measured by Tobin's Q, as a result of overcoming domestic financing constraints and poor institutional arrangements. Moreover, this study reveals that companies from countries with a lower level of economic freedom, as measured by the World Index of Fraser Institute, are also more likely to cross-list.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
