International Cross-Listing, Cash Reserve and Acquisition
نویسندگان
چکیده
We examine the impact of excess cash on non-U.S. firms’ mergers and acquisitions behavior to test the effectiveness of U.S. investor protections in improving the corporate governance of cross-listed firms. We find that firms with higher excess cash make more acquisitions and experience lower announcement abnormal returns. While acquisition likelihood is similar, crosslisted firms make better M&A with excess cash than non-cross-listed companies. We find this improvement in cash utilization is more pronounced for cross-listed firms from countries with weak investor protection.
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