The Sarbanes-Oxley Act and Cross-Listed Foreign Private Issuers
Cross-listed foreign private issuers (FPIs) experience abnormal stock returns of -10％, on average, in both the U.S. and their home markets in response to the passage and implementation of the Sarbanes- Oxley Act (SOX), whereas Pink Sheets traded FPIs that are exempt from SOX compliance are not affected. The abnormal returns are generally more negative for better governed FPIs. Further, many more cross-listed FPIs “go dark in the U.S. in the post-SOX period relative to the pre-SOX period, i.e., voluntarily delist and deregister to avoid SEC reporting obligations. The abnormal returns at the delisting and deregistration announcements are negative in the pre-SOX period, and positive in the post-SOX period, with the difference being highly significant. Taken together, my results suggest that SOX imposes excessive compliance costs on cross-listed FPIs. My results are also consistent with the existence of legal bonding benefits and with the weakening of these benefits by SOX compliance.
国际会议
成都
英文
1-50
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）