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The Effect Of Corporate Governance Regulatory Intervention On Firm Decisions And Market Reactions, The Italian Case, Giorgio Gotti, Stacy R. Wade
The Effect Of Corporate Governance Regulatory Intervention On Firm Decisions And Market Reactions, The Italian Case, Giorgio Gotti, Stacy R. Wade
Financial Services Forum Publications
This paper investigates whether Italian companies that cross-list in the United States between 1993 and 2005 show (i) a change in their internal policies as anticipated by the bonding hypothesis, (ii) an increase in market value, or (iii) an increase in the access to capital funds. We use the unique environment created by the 1998 Draghi reform which significantly improved the protection of Italian listed companies’ minority shareholders and we further examine the impact of legislated changes in corporate governance in Italy on the decision of Italian companies to cross-list in the United States.
Our results indicate that following the …