Resumen de Investor protection, investment efficiency and value: : The case of cross-listed firms
We examine the impact of improved investor protection due to cross-listing on foreign firms' investment decisions and firm value. While we find that cross-listing increases firms' capital expenditures and mergers and acquisitions activities, cross-listed firms also invest more in research and development, make better acquisition decisions, and have higher profitability compared to non-cross-listed firms. Moreover, cross-listing is associated with better cash utilization by foreign firms for investments. These improvements in investments and cash utilization are more pronounced for firms cross-listed on US exchanges and for firms from countries with weak investor protection laws.
