Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/taylor-francis/the-impact-of-hiring-a-reputable-underwriter-on-the-information-eTy0et6jjO
References (73)
-
R. Merton (1987)
Presidential Address: A simple model of capital market equilibrium with incomplete information -
G. Karolyi (1998)
Why Do Companies List Shares Abroad?: A Survey of the Evidence and Its Managerial ImplicationsFinancial Markets, Institutions and Instruments, 7
-
Darius Miller (1999)
The market reaction to international cross-listings:: evidence from Depositary ReceiptsJournal of Financial Economics, 51
-
W. Megginson, Kathleen Weiss (1991)
Venture Capitalist Certification in Initial Public OfferingsJournal of Finance, 46
-
J. Heckman (1979)
Sample selection bias as a specification errorApplied Econometrics, 31
-
Shane Corwin (2003)
The Determinants of Underpricing for Seasoned Equity OffersJournal of Finance, 58
-
Mark Lang, Karl Lins, Darius Miller (2002)
Adrs, Analysts, and Accuracy: Does Cross Listing in the U.S. Improve a Firm's Information Environment and Increase Market Value?Financial Accounting
-
T. Beck, Asli Demirgüç-Kunt, R. Levine (1999)
A New Database on Financial Development and Structure -
The impact of hiring a reputable underwriter on the information environment of cross-listed firms -
(1990)
Expectations Adjustments via timely management forecasts: Review, Synthesis, and suggestions for future research -
C. Leuz (2002)
Discussion of Adrs, Analysts, and Accuracy: Does Cross Listing in the U.S. Improve a Firm's Information Environment and Increase Market Value?Financial Accounting eJournal
-
Mark Lang, J. Raedy, W. Wilson (2005)
Earnings Management and Cross Listing: Are Reconciled Earnings Comparable to Us Earnings?SMU Cox: Accounting (Topic)
-
H. Baker, John Nofsinger, D. Weaver (1998)
International Cross-Listing and VisibilityCapital Markets: Market Microstructure eJournal
-
W. Greene (1981)
Sample Selection Bias as a Specification Error: CommentEconometrica, 49
-
Gregory Kadlec, John Mcconnell (1994)
The Effect of Market Segmentation and Illiquidity on Asset Prices: Evidence from Exchange ListingsJournal of Finance, 49
-
Magali Valero, Heiwai Lee, Nianyun Cai (2009)
Cross-listing pursuit of unseasoned foreign firms after going public in the U.SJournal of Business Research, 62
-
(2005)
Private Benefits of Control, Ownership, and the Cross-Listing Decision, (National Bureau of Economic Research, Inc, NBER Working Papers: 11162) -
M. Brennan, P. Hughes (1991)
Stock Prices and the Supply of InformationJournal of Finance, 46
-
(1980)
The sample includes cross-listed firms on a U.S. stock exchange between -
R. Rajan, Luigi Zingales (1996)
Financial Dependence and GrowthSPGMI: Compustat Fundamentals (Topic)
-
(2008)
Where is the market? Evidence from cross-listing in the U.S -
Craig Dunbar (1997)
Factors Affecting Investment Bank Initial Public Offering Market ShareBanking & Insurance
-
J. Coffee (2002)
Racing Towards the Top?: The Impact of Cross-Listings and Stock Market Competition on International Corporate GovernanceCorporate Law: Securities Law eJournal
-
Simon Gervais, Ron Kaniel, Dan Mingelgrin (2001)
The High Volume Return PremiumJournal of Finance, 56
-
C. Leuz (2003)
Discussion of ADRs, Analysts, and Accuracy: Does Cross-Listing in the United States Improve a Firm's Information Environment and Increase Market Value? -
G. Karolyi (2012)
Corporate governance, agency problems and international cross-listings: A defense of the bonding hypothesisEmerging Markets Review, 13
-
J. Chang, T. Khanna, K. Palepu (2000)
Analyst Activity Around the WorldInstitutional & Transition Economics eJournal
-
(2004)
Log total assets: Natural logarithm of firms' Total Assets ($MM) as of the end of the fiscal year when the firm raises equity/ cross-lists. Dollar values are adjusted to reflect -
(2004)
Why are foreign firms listed in the -
Craig Doidge, G. Karolyi, René Stulz (2004)
Why Do Countries Matter so Much for Corporate Governance?LSN: Securities Law: U.S. (Topic)
-
Shmuel Baruch, M. Lemmon, G. Karolyi (2003)
Multi-Market Trading and Liquidity: Theory and EvidenceHong Kong: Finance (Topic)
-
(2009)
Private benefits of control, ownership, and the cross-listing decision -
Mark Lang, Karl Lins, Darius Miller (2003)
Concentrated Control, Analyst Following and Valuation: Do Analysts Matter Most When Investors are Protected Least?UNC: Accounting (Topic)
-
G. Loureiro (2010)
The Reputation of Underwriters: A Test of the Bonding HypothesisUnderwriting
-
(2007)
Anti-self-dealing" (ASD) index. The threshold to distinguish high from low ASD is the median of the ASD index -
(2000)
Natural logarithm of the GDP per capita per country/year. GOP per capita (U$) reflects -
E. Fama, K. French (1997)
Industry costs of equityJournal of Financial Economics, 43
-
J. Hubbard (2003)
ADRs, Analysts, and Accuracy: Does Cross Listing in the United States Improve a Firm's Information Environment and Increase Market Value?Cfa Digest, 33
-
(2009)
foreign firms listed in the U.S. worth more -
R. Porta, Florencio Silanes, Andrei Shleifer, Robert Vishny (1997)
Legal Determinants of External FinanceCapital Markets eJournal
-
Craig Doidge, G. Karolyi, René Stulz (2007)
Has New York Become Less Competitive in Global Markets? Evaluating Foreign Listing Choices over TimeCorporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
-
(2002)
Econometric analysis -
G. Karolyi (2004)
The World of Cross-Listings and Cross-Listings of the World: Challenging Conventional WisdomEuropean Finance eJournal
-
(2005)
The Law and Economics of Self-Dealing -
Gerard Hoberg (2006)
The Underwriter Persistence PhenomenonMutual Funds
-
Tim Loughran, J. Ritter (2002)
Why Has IPO Underpricing Changed Over Time?Financial Management
-
C. Barry, Stephen Brown (1985)
Differential Information and Security Market EquilibriumJournal of Financial and Quantitative Analysis, 20
-
Lily Fang, A. Yasuda (2010)
Are Stars’ Opinions Worth More? The Relation Between Analyst Reputation and Recommendation ValuesJournal of Financial Services Research, 46
-
J. Siegel (2005)
Can foreign firms bond themselves effectively by . . renting U.S. securities lawsJournal of Financial Economics, 75
-
(2001)
Why are Foreign Firms Listed in the U.S. Worth More -
J. Coffee (1999)
The Future as History: The Prospects for Global Convergence in Corporate Governance and its ImplicationsCorporate Finance: Governance
-
01) (1,63) -0,187 -0,154 -0,175 -0 -
W. Bailey, G. Karolyi, C. Salva (2005)
The Economic Consequences of Increased Disclosure: Evidence from International Cross-ListingsOhio State University
-
(1990)
Analyst coverage and institutional ownership -
Michael Cliff, David Denis (2004)
Do Initial Public Offering Firms Purchase Analyst Coverage with UnderpricingJournal of Finance, 59
-
R. Ibbotson, J. Sindelar, J. Ritter (1994)
THE MARKET'S PROBLEMS WITH THE PRICING OF INITIAL PUBLIC OFFERINGSJournal of Applied Corporate Finance, 7
-
W. Gebhardt, Charles Lee, B. Swaminathan (2000)
Toward an Implied Cost of CapitalCorporate Finance and Organizations eJournal
-
Rafael Porta, Florencio López‐de‐Silanes, Andrei Shleifer, Robert Vishny (1996)
Law and FinanceJournal of Political Economy, 106
-
Ravi Bhushan (1989)
Firm characteristics and analyst followingJournal of Accounting and Economics, 11
-
Alexander Ljungqvist, Felicia Marston, W. Wilhelm (2003)
Competing for Securities Underwriting Mandates: Banking Relationships and Analyst RecommendationsBanking & Financial Institutions
-
L. Krigman, Kent Womack (2001)
Why Do Firms Switch Underwriters?Corporate Finance: Capital Structure & Payout Policies
-
Katherine Smith, George Sofianos (1997)
The Impact of an NYSE Listing on the Global Trading of Non-U.S. Stocks -
Richard Carter, Steven Manaster (1990)
Initial Public Offerings and Underwriter ReputationJournal of Finance, 45
-
Stephen Foerster, G. Karolyi, John Griffin, Rick Johnston, Sonali Chalishazar, Jim Shapiro, Nyse, Mike Shokhouhi, nasd, Vince Fitzpatrick, Joe Of, N. York, Mark ~citibank, Rene jp, Morgan, Y. Amihud, John Mcconnell, Darius Miller, René ~editor, Alexander, Eun, Janakiramanan, Jayaraman, Tan Shastri (1999)
The Effects of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the United StatesJournal of Finance, 54
-
(1998)
19851991 and 1992-2004 rankings are based upon Carter et a -
H. White (1980)
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 48
-
(2007)
Where is the market? Evidence from cross-listing in the U.S., Review of Financial Studies Forthcoming -
(2008)
Where is the market? Evidence from cross-listing in the U -
Richard Carter, Frederick Dark, Ashutosh Singh (1998)
Underwriter Reputation, Initial Returns, and the Long‐Run Performance of IPO StocksJournal of Finance, 53
-
Ron Kaniel, Dong Li, L. Starks (2003)
The High Volume Return Premium and the Investor Recognition Hypothesis: International Evidence and DeterminantsMcCombs School of Business Research Paper Series
-
Mark Lang, Russell Lundholm (1998)
Corporate Disclosure Policy and Analyst Behavior -
Stephen Foerster, G. Karolyi (1993)
International Listings of Stocks: The Case of Canada and the U.S.Journal of International Business Studies, 24
-
M. Ellis (2000)
Globalization, Corporate Finance, and the Cost of CapitalCfa Digest, 30
- Publisher
- Taylor & Francis
- Copyright
- © 2013 Taylor and Francis Group, LLC
- ISSN
- 2077-0227
- eISSN
- 1029-3523
- DOI
- 10.1080/10293523.2013.11082561
- Publisher site
- See Article on Publisher Site
Abstract
I examine how the information environment of cross-listed firms is affected by a mechanism of reputational bonding: the choice of a reputable underwriter to sponsor an equity offering. Using a sample of foreign firms cross-listed in the U.S. from 1980 to 2004, I find that those that raise equity and hire a reputable underwriter, post cross-listing, observe higher analyst coverage and more accurate earnings forecasts. Empirical evidence shows that these improvements are positively related to firm value. More importantly, the improved accuracy of firms sponsored by top underwriters has an additional positive impact on their Tobin's q. Overall, the results show that top underwriters play an important monitoring role, via their impact on firm's information environment.
Journal
Investment Analysts Journal – Taylor & Francis
Published: Jan 1, 2013