...com/locate/emr Corporate governance, agency problems and international cross-listings: A defense of the bonding hypothesis☆ G. Andrew Karolyi ⁎ Johnson Graduate School of Management, Cornell University, 348 Sage Hall, Ithaca, NY 14853, USA a r t i c l e i n f o Article history: Received 30 June 2011 Received in revised form 6 August 2012 Accepted 7 August 2012 Available online 17 August 2012 JEL classification: F30 G15 G32 G38 Keywords: Cross-listing Stocks Bonding International financial markets a b s t r a c t Why firms from around the world seek to cross-list their shares on overseas exchanges has intrigued scholars during the past two decades. A general dissatisfaction with the conventional wisdom about investment barriers segmenting global investors and how cross-listings overcome those barriers cleared the way for newer wisdom about informational problems and agency conflicts, and how firms could overcome weaknesses in corporate governance by listing on, and thus “bonding” to, overseas markets with stronger regulatory oversight, stringent reporting and disclosure requirements and investor protections. Critics have challenged the viability of the bonding hypothesis, which I answer in this review. © 2012 Elsevier B.V. All rights reserved. 1. Introduction Cross-listing — also referred to as “dual-listing,” “international listing,” or even “inter-listing,” — is usually a strategic choice made by a firm to secondarily list its equity shares...
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...Cross listing: a case study of Cliffs Natural Resources Inc. (CLF) About 50 U.S.-listed companies are cross-listed on NYSE Euronext, the EU's largest regulated equities market. What they've discovered is that Euronext listings are ideal for U.S.-listed companies that want to diversify their shareholder base, gain a European trading presence or increase their market visibility in the eurozone, the world's second largest source of capital. "Globalization means that companies, customers and suppliers have a presence in more locations than ever, and when these locations are in the eurozone, cross-listing on Euronext certainly increases the visibility of an enterprise or brand," says Marjorie Adams, chair of DLA Piper's capital markets group in the U.S. Other benefits of cross-listing on Euronext include the ability to trade and list in dollars and euros; the ability to attract investors whose mandates only allow investing in euro-denominated shares; the potential for a lower cost of capital through increased liquidity premiums on equity; typically lower bid-ask spreads than single exchange companies; and less information asymmetry between capital markets, as firms with multiple listings generally get twice the analyst coverage. A Euronext listing also allows European money managers to avoid certain regulatory filings and mandates for eurozone-only listed companies. In January 2008, Euronext made cross-listing even more attractive by introducing Fast Path, a streamlined and cost-effective...
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...dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF decided to “take advantage” of cross-border listing. On March 11, 2009...
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...Does Epilepsy Qualify for Disability Benefits? If you have severe and frequent epileptic seizures that interfere with your daytime activities, you may be able to get disability benefits. Make the most of your claim. We've helped 225 clients find attorneys today. Enter your zip code to find local lawyers. ------------------------------------------------- Top of Form Zip Code: Get Started Bottom of Form by Alison Barjaktarovich, Contributing Author Share on Facebook Share on Google Plus Epilepsy is a brain disorder that causes recurring seizures. It can be the result of a condition such as cerebral palsy or strokes, but there is often no known cause. The symptoms of a seizure can range from simple staring spells to convulsions and loss of consciousness. The seizures can also vary in frequency, although in order to be diagnosed with epilepsy you must have had two unprovoked seizures. Epilepsy is primarily treated with medications, which are successful in reducing the frequency and severity of seizures in more than half of epilepsy patients. However, even mild seizures can be dangerous if they happen at certain times, such as when you’re driving or swimming, and could limit your ability to perform some work activities. Can You Qualify for Disability Benefits Because of Epilepsy? Adults with epilepsy may be eligible for Social Security disability benefits. The Social Security Administration (SSA) mainly evaluates epilepsy according to the type, frequency, duration...
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...dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF decided to “take advantage” of cross-border listing. On March 11, 2009...
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...Harvard Business School and NBER Robin Greenwood Harvard Business School and NBER March 2012 Abstract Standard theories of corporate ownership assume that because markets are efficient, insiders ultimately bear all agency costs that they create and therefore have a strong incentive to minimize conflicts of interest with outside investors. We argue that if equity is overvalued, however, mispricing offsets agency costs and can induce a controlling shareholder to list equity. Higher valuations may support listings associated with greater agency costs. We test the predictions that follow from this idea on a sample of publicly listed subsidiaries in Japan. Subsidiaries in which the parent sells a larger stake and subsidiaries with greater scope for expropriation by the parent firm are more overpriced at listing, and minority shareholders fare poorly after listing as mispricing corrects. Parent firms often repurchase subsidiaries at large discounts to valuations at the time of listing and experience positive abnormal returns when repurchases are announced. * We thank Malcolm Baker, Mihir Desai, Masako Egawa, Alp Ercil, Yasushi Hamao, Sam Hanson, Naoki Kamiyama, David Matsa, David Scharfstein, Andrei Shleifer, Jeremy Stein, Kenji Wada, Lucy White, and seminar participants at Georgetown, Harvard, IESE, the NBER Japan program, the NBER Law and Economics Program, and Washington University in St. Louis for helpful comments...
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...general public. However, 'Listing' is a process that a private company converting into a public company which the shares can be traded on stock exchange (Bursa Malaysia). Once the private company transformed successfully, the company is no longer owned by the individual and entrepreneurs but a group of shareholders (Asia Pacific Stock Exchange, 2012). Normally, company whose plans for listing or further growth will use an initial public offering (IPO) as a method to generate capital needed for expand. IPO is the first sale of stock to the public by a company. (CNBC, 2012) On the others sides, private company whose plan to go listing is for several purposes or benefits. For instance, the public company able to raise their capital by using IPO, simultaneously, a success IPO is an accelerator towards your company expansion. According to Bursa Malaysia listing statistics, in year 2012, there are 14 company whose listing in Main Market and 3 company in ACE Market. Recently, Tune Ins Holdings Bhd (Tune Ins), which is set to bet listed on the Main Market of Bursa Malaysia in February, 2013. (thestar, 2013) Tune Ins has publicize its IPO of 37.59 million shares to the public. On June 2, 2011, Groupon announced to the financial markets that Groupon was planning an IPO. Literature Review I will discuss why did the companies decide to go listing (public listed company). There are several reasons why owners of a business decided to go listing. First reason and major...
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...Luxembourg. In 2008, the Association of the Luxembourg Funds Industry (ALFI) launched a working group focusing on the development of Luxembourg as a center of excellence for Shariah compliant funds. In early 2009, the Luxembourg Deutsche Bank launched "Al Mi'yar", a Luxembourg domiciled platform which aims at smoothing the issuance of Shariah compliant securities. In 2009, the Central Bank of Luxembourg became a member of the Islamic Financial Services Board (IFSB) and, as such, is the first Central Bank of the European Union to become a member of that institution. In January 2010, the Luxembourg Tax Authority published a circular, the object of which is to clarify the tax treatment of Murabaha and Sukuk transactions and ensure that they benefit from the same tax treatment as conventional financing products. In April 2010, Luxembourg for Finance (LFF) issued a brochure describing in...
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...Human Resource Strategies Section: 1 Human Resource Planning: Human Resource planning is the process of getting the right number of qualified and competent people into the tight job at the right time. Putting another way, HR planning is the system of matching the supply of people internally and externally with the openings the company expects to have over a given time frame. The quality of the candidate and his/her expertise are deciding factor how Grameenphone will succeed in achieving its visions, objectives and tasks. Human Resource planning in Grameenphone must be a part of the Company’s overall plan. When drawing up Human resource plans, it is important to take the following factors into consideration: * Potential/expected workload and expertise requirements and to ensure the optimum and effective utilization of the Human resources for the entire Company, both for current and future requirements. * Possibilities for greater efficiency through reorganization and the use of tools/facilities, and making adjustments during expansion and contraction. * Employee turnover/employee mobility * Potential transfer, promotion, periods of leave etc and design and implement plans to help achieve manpower objective. Human Resource planning should start at the beginning of the year so that HR can co-ordinate Human Resource planning process at the right time. Also necessary budget provisions are important factor to look into. 3.1.2 Classification...
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...and developed an all-together new algorithm for Google, providing benefit of relevant, to the point, and quick search. 1998: PageRankTM Algorithm favored pages that were referred by other pages and was determined by counting its inbound link. Till now the only source of revenue was licensing search technology to other search engines, no advertising revenues. Dec 1999: Paid Listing, cost per impression basis, i.e. they changed advertisers each time user views thread irrespective of clicking on the link. Mid 2001: Without spending on Marketing, Google became the 9th largest website in US. 2002: Google adopted a variant of cost per click (CPC) model. They weighted CPC by actual click through rate (CTR) to its expected CTR, i.e. Ads with higher CTR received more prominent position and vice-versa. This maximized their revenue. Google launches Froogle, a product search that identifies merchants for specific products along with prices. Merchants paid neither for their products to appear nor for referral fees when user clicked. May 2002: AOL switches fully to Google Algorithm and paid listing. March 2003: Launches contextual paid listing called AdSense, presented Ads on webpages with primarily editorial context. Jan 2004: Google launched personalized search, worked as per users past search and also provided history of searches. Google improved feature by offering advertisers free software to optimize paid listing campaigns. 2004: Google market share surpasses Yahoo and grows...
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...Analyzing and Developing a Successful Real Estate Information System Plan Jon A. Snyder Park University Management/Computer Information Systems IS 315 Computer Sys Analysis & Design I Annette M. Story February 27, 2012 Abstract Since information systems become more and more important in our today’s society, business firms, organizations, and individuals rely on these systems to manage their daily business and social activities. Hence, it becomes more and more important not only to support the efficient development of such systems but the modification and adaption of once deployed information systems need to be supported, too. Since complex requirements and the technical progress of computer systems lead to a high complexity of computer systems, the use of software models helps to manage system’s complexity and provides a tool for communication and documentation purposes. In particular for web-based information systems, a number of model driven approaches were developed. However, I believe that compared to the user interface layer and the persistency layer, there could be a better support of consistent approaches providing a suitable architecture for the consistent model driven development of business logic from early analysis until system maintenance. Analyzing and Developing a Successful Real Estate Information System Plan System analysis and design consists of four major phases and they are the planning phase, the analysis phase, the design phase and...
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...EVENT SPONSORSHIP PROPOSAL MAKE A DIFFERENCE ... and have fun doing it. IT’S A WIN-WIN. WE’LL FIND THE RIGHT FIT. Sponsoring a Greater Hartford Arts Council event provides you the unique opportunity to connect with the Greater Hartford community, to build brand awareness and show your company’s support of an important cause: the arts! Looking for the opportunity to become a part of one of the biggest events of the year? To put your company name in front of hundreds of sophisticated party goers? Want to show your employees and investors your dedication to our community? Consider a sponsorship at BIG RED FOR THE ARTS. Each event reaches a different key audience segment and provides a fun, entertaining and engaging way for you to “wow” clients, vendors and employees. Feel good about supporting our local arts, heritage and cultural organizations as you enjoy an unforgettable evening. More in the mood for an intimate networking opportunity? Looking for a one-of-a-kind experience to make a big impression? Learn more about sponsoring MAX’S FARM TO TABLE WINE DINNER. All photos appearing in this booklet by Roger Castonguay and Heather White of The Defining Photo. If you want to be part of a fun, funky, festive evening, an ARTINI sponsorship is right for you. Get your name in front of local young professionals, reward your employees and show your clients how cool you really are. Associate your name with art, support our local...
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...Association of Management Consulting Firms * Careers in Consulting * Careers in Management Consulting * Institute of Management Consultants * Management Analysts Entrepreneurship / Small Business * East Bay Chapter of SCORE (Service Corps of Retired Executives) * Kauffman Foundation * US Small Business Administration Finance * Association for Financial Professionals * Becomming A Financial Analyst * Budget Analysts * Careers in Finance * Careers in Financial Markets (PDF) * Financial Industry Regulatory Authority (FINRA) * Insurance Adjusters, Examiners and Investigators * Women on Wall Street Human Resources * American Society for Training and Development (ASTD) * Benefits Administrator * Human Resources, Training, and Labor Relations Managers and...
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...Yinzhi Miao Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State LL.M. Long Paper Harvard Law School Supervised by Prof. Reinier Kraakman and Mark Roe April 2012 Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State Yinzhi Miao Abstract: There are both considerate horizontal and vertical governance problems in the Chinese state-owned-enterprises (SOEs). Due to their privileged positions in the political economy, traditional institutions of corporate governance are far from perfect. Thus the value of oversea listing as a governance mechanism is highlighted, and that could be better revealed by a deeper analysis of the benefit-and-cost balance by the government which controls the SOEs. However, effective as it is, oversea listing could not be a marvelous antidote to all governance ills. Further, as the two major governance disasters of oversea listed SOEs shows, if the government lacks a proper self-positioning, nontrivial negative implications will be brought to SOEs governance via oversea listing. The ultimate function of corporate governance in SOEs thus relies heavily on public governance. Key words: state-owned-enterprises, oversea listing, corporate China governance, 2 Table of contents I. Introduction ....................................................................................................................4 II. The Governance problems of Chinese SOEs and the limitations of...
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...positive aspects of Globalization and its relationship to the world economy. Pilai presented the negative side of the fight listing many highly emotional (pathos) arguments such as the exploitation of labor, citing low wages and relaxed safety standards as problems and pollution caused by countries that have lax pollution regulation standards. Education.com took the positive side of the fight using ethos, citing its positive aspects of such as new job and industry creation in developing countries. Obviously these are emotionally charged issues…on both sides of the argument. Even with all of the persuasive negative aspects cited by Pilai, Education.coms’ view by using convincing logos -- is that globalism, if given a chance, will eventually prove to be beneficial carrying many from a life to poverty to prosperity. Pilai begins by listing many the many negative aspects of globalism using both pathos and ethos such as: 1- Developing nations have outsourced manufacturing and white collar jobs. This means less jobs for their people 2- Globalization has led to the exploitation of labor….Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods 3- Deadly diseases are spread by travelers to the remotest corners of the globe. Education .com begins in much the same way as Pilai by listing the many...
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