The impact of cross-delisting from the U.S. on firms’ financial constraints

Detalhes bibliográficos
Autor(a) principal: Loureiro, Gilberto
Data de Publicação: 2020
Outros Autores: Silva, Sónia Maria da Silva Faria Nogueira da
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: https://hdl.handle.net/1822/69288
Resumo: We investigate the impact of cross-delisting on firms’ financial constraints. We find that firms that cross-delisted from a U.S. stock exchange face stronger post-delisting financial constraints than their cross-listed counterparts, as measured by investment-to-cash flow and cash-to-cash flow sensitivities. Following a delisting, the sensitivity of investment to cash flow increases significantly, and firms also tend to save more cash out of cash flows. These effects are mainly driven by cross-delisted firms from countries with weaker investor protection and are more predominant after the passage of Rule 12 h-6 (of 2007), which made it easier for foreign firms to leave U.S. markets.
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spelling The impact of cross-delisting from the U.S. on firms’ financial constraintsCross-delistingFinancial constraintsInformation asymmetryInvestment-to-cash flow sensitivityCash-to-cash flow sensitivitySocial SciencesWe investigate the impact of cross-delisting on firms’ financial constraints. We find that firms that cross-delisted from a U.S. stock exchange face stronger post-delisting financial constraints than their cross-listed counterparts, as measured by investment-to-cash flow and cash-to-cash flow sensitivities. Following a delisting, the sensitivity of investment to cash flow increases significantly, and firms also tend to save more cash out of cash flows. These effects are mainly driven by cross-delisted firms from countries with weaker investor protection and are more predominant after the passage of Rule 12 h-6 (of 2007), which made it easier for foreign firms to leave U.S. markets.This paper is partially financed by National Funds of the FCT – Portuguese Foundation for Science and Technology within the project UID/ECO/03182/2019.ElsevierUniversidade do MinhoLoureiro, GilbertoSilva, Sónia Maria da Silva Faria Nogueira da20202020-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/69288engLoureiro, G., & Silva, S. (2020, January). The impact of cross-delisting from the U.S. On firms’ financial constraints. Journal of Business Research. Elsevier BV. http://doi.org/10.1016/j.jbusres.2019.09.0550148-296310.1016/j.jbusres.2019.09.055info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-10-07T01:21:33Zoai:repositorium.sdum.uminho.pt:1822/69288Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:23:32.878876Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The impact of cross-delisting from the U.S. on firms’ financial constraints
title The impact of cross-delisting from the U.S. on firms’ financial constraints
spellingShingle The impact of cross-delisting from the U.S. on firms’ financial constraints
Loureiro, Gilberto
Cross-delisting
Financial constraints
Information asymmetry
Investment-to-cash flow sensitivity
Cash-to-cash flow sensitivity
Social Sciences
title_short The impact of cross-delisting from the U.S. on firms’ financial constraints
title_full The impact of cross-delisting from the U.S. on firms’ financial constraints
title_fullStr The impact of cross-delisting from the U.S. on firms’ financial constraints
title_full_unstemmed The impact of cross-delisting from the U.S. on firms’ financial constraints
title_sort The impact of cross-delisting from the U.S. on firms’ financial constraints
author Loureiro, Gilberto
author_facet Loureiro, Gilberto
Silva, Sónia Maria da Silva Faria Nogueira da
author_role author
author2 Silva, Sónia Maria da Silva Faria Nogueira da
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Loureiro, Gilberto
Silva, Sónia Maria da Silva Faria Nogueira da
dc.subject.por.fl_str_mv Cross-delisting
Financial constraints
Information asymmetry
Investment-to-cash flow sensitivity
Cash-to-cash flow sensitivity
Social Sciences
topic Cross-delisting
Financial constraints
Information asymmetry
Investment-to-cash flow sensitivity
Cash-to-cash flow sensitivity
Social Sciences
description We investigate the impact of cross-delisting on firms’ financial constraints. We find that firms that cross-delisted from a U.S. stock exchange face stronger post-delisting financial constraints than their cross-listed counterparts, as measured by investment-to-cash flow and cash-to-cash flow sensitivities. Following a delisting, the sensitivity of investment to cash flow increases significantly, and firms also tend to save more cash out of cash flows. These effects are mainly driven by cross-delisted firms from countries with weaker investor protection and are more predominant after the passage of Rule 12 h-6 (of 2007), which made it easier for foreign firms to leave U.S. markets.
publishDate 2020
dc.date.none.fl_str_mv 2020
2020-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/1822/69288
url https://hdl.handle.net/1822/69288
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Loureiro, G., & Silva, S. (2020, January). The impact of cross-delisting from the U.S. On firms’ financial constraints. Journal of Business Research. Elsevier BV. http://doi.org/10.1016/j.jbusres.2019.09.055
0148-2963
10.1016/j.jbusres.2019.09.055
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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