Global financial markets and the risk premium on U.S. equity

Article Abstract:

An analysis of the risk premium on US securities and related foreign influence is presented. A bivariate GARCH-in-mean process is applied for the analysis. It isshown that a functional relationship exists between conditional expected returnon US stocks, conditional covariance of stock return and foreign index return. In addition, the capital assets pricing model is validated by the analysis.

Evaluation, International aspects, Securities, Financial markets, Capital assets pricing model, Capital asset pricing model

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Why are foreign firms listed in the U.S. worth more?

Article Abstract:

It is shown that the firms from around the world that cross-list their shares in the U.S. have higher valuations than other firms from their country that do not cross-list. The firms that list in the U.S. are firms whose controlling shareholders find it valuable to consume fewer private benefits of control in order to take advantage of valuable growth opportunities.

Foreign investments, Foreign corporations

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U.S. cross-listings and the private benefits of control: evidence from dual-class firms

Article Abstract:

The effects of listing of non-U.S. firms on U.S. stock exchanges are discussed. It is observed that the companies which have lower voting share classes in their countries also benefit from such listing as U.S. cross listing improves protection of minority shareholders and simultaneously decreases the private advantages of control.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Listing & Registration, Causes of, Corporate governance, Securities listing, Suffrage, Voting rights

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