THREE ESSAYS ON CORPORATE GOVERNANCE, RISK AND CROSS LISTING

1 online resource (125 pages) : PDF

2010

University of North Carolina at Charlotte

In Chapter 1, we set up an equilibrium model which emphasizes cost of corporate governance. The model indicates that better corporate governance increases the likelihood of dispersed corporate ownership structure. In Chapter 2, we use a sample of democratic firms (with 5 or less anti-takeover provisions) from the Investor Responsibility Research Center (IRRC) database and use idiosyncratic volatility as a proxy for information from the market of corporate control as in Ferreira and Laux (2007) to link the equity performance, market of corporate control and corporate governance. We find that firms which are the least vulnerable to takeover threat (the least idiosyncratic risk) outperform the others. We also find that market information of takeover vulnerability is negatively related to future merger and acquisition shocks. All these effects are mitigated by the Sarbanes-Oxley Act 2002.Chapter 3 examines the decision to list abroad by Chinese companies in the form of ADRs and foreign IPOs from 1993 to 2005. Subsequent to the listing events, the issuers experience a significant drop in profitability, tangible assets ratio, and asset turnover. There is no significant change in capital expenditure. Stock returns after the listing events are generally negative for ADR and foreign IPO stocks. More significantly, these stocks under-perform the market in the post-event window ranging from three days to three years.

doctoral dissertations

Finance
Business

Ph.D.

Corporate Governance
Ownership Structure
Takeover

Business Administration

King, Tao-Hsien Dolly

King, Tao-Hsien Dolly
Clark, Steven
Tian, Weidong
Wang, Qingfang

Thesis (Ph.D.)--University of North Carolina at Charlotte, 2010.

This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s). For additional information, see http://rightsstatements.org/page/InC/1.0/.

Copyright is held by the author unless otherwise indicated.

Zhang_uncc_0694D_10116

http://hdl.handle.net/20.500.13093/etd:1340