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Three Essays on The Effects of The Exchange Act Rule 12h-6 on Cross-Listings of Foreign Firms in The U.S. Market

Piriyakul-Frye, Pratanphorn
http://rave.ohiolink.edu/etdc/view?acc_num=csu1545255172024426

Abstract Details

2018, Doctor of Business Administration, Cleveland State University, Monte Ahuja College of Business.
The 2007 Exchange Act Rule 12h-6 relaxes the deregistration requirements for the U.S.-listed foreign firms to leave the U.S. market, opening an opportunity to examine the benefit and costs of listing in the U.S market for foreign firms. Using a sample of all U.S.-exchange cross-listing events during 1998-2012, the results document that the U.S. exchanges are more likely to attract a larger pool of foreign listing activities in the post-Rule 12h-6 period. This increased attractiveness of the U.S market, however, is worrisome as the post-Rule 12h-6 listings appear to be more pronounced among firms from countries with weaker investor protection. Likewise, the critical evidence, including a substantial decline in valuation premiums of U.S. cross-listing, and a significant increase in valuation gap between the U.S. domestic and the U.S.-listing foreign firms, raises more concern about the adverse impact of the new rule. Overall, the results suggest that while the rule enhanced the attractiveness of the U.S. market, its unintended consequences such as the weakening disclosure requirements and protection system can provoke a moral hazard issue in the U.S. cross-listing and ultimately may imperil the supremacy of the U.S. capital market.
Wei Wang (Committee Chair)
Chen Cai (Committee Member)
Vasillios Kosteas (Committee Member)
Shuai Wang (Committee Member)
180 p.
Finance
Exchange Act Rule 12h-6; Deregulation; Regulatory strategy; US cross-listing; Legal bonding; US stock exchanges; Foreign firm; Firm valuation

Recommended Citations

Citations

  • Piriyakul-Frye, P. (2018). Three Essays on The Effects of The Exchange Act Rule 12h-6 on Cross-Listings of Foreign Firms in The U.S. Market [Doctoral dissertation, Cleveland State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=csu1545255172024426

    APA Style (7th edition)

  • Piriyakul-Frye, Pratanphorn. Three Essays on The Effects of The Exchange Act Rule 12h-6 on Cross-Listings of Foreign Firms in The U.S. Market. 2018. Cleveland State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=csu1545255172024426.

    MLA Style (8th edition)

  • Piriyakul-Frye, Pratanphorn. "Three Essays on The Effects of The Exchange Act Rule 12h-6 on Cross-Listings of Foreign Firms in The U.S. Market." Doctoral dissertation, Cleveland State University, 2018. http://rave.ohiolink.edu/etdc/view?acc_num=csu1545255172024426

    Chicago Manual of Style (17th edition)

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© 2018, all rights reserved.
This open access ETD is published by Cleveland State University and OhioLINK.