- Relation between firm value - Firms which were cross-listed in the USA and cross-listing in the have a 16.5% higher Q; (Tobin’s Q) Tobin’s Doidge et al. 8,680 firms for the year USA Regression - Firms which were cross-listed in the USA (2004) 1997 - Relation between growth potential have significant higher valued growth and being cross-listed in the USA opportunities. Financial / ownership and corporate governance data of 603 Negative relation between level of investor Cheung et al. Relation level of investor protection Hong Kong listed Regression protection (firms with Chinese owners, (2006) and RPTs companies and 375 in Hong Kong) and RPTs. filings concerning RPTs for the years 1998 till 2000 Figure 5: Summarizing table compliance/disclosure studies Authors Object of study Sample Methodology Outcome - Most companies mentioned parent (96%) and associated companies (81%) in their Disclosure / consolidated financial statement Backhuijs & Information provision with regard to 73 Dutch companies for compliance - Companies mainly mentioned the nature of Braam (2008) related parties the year 2007 study the transaction and the amount of transaction, slightly more than half of the firms mentioned the amount of outstanding balances. Figure 6: Summarizing table empirical research firm characteristics and RPTs / firm value Authors Object of study Sample Methodology Outcome
Doidge et al. (2004) - Relation between firm value (Tobin’s Q) and cross-listing in the USA - Relation between growth potential and being cross-listed in the USA 8,680 firms for the year 1997 Regression - Firms which were cross-listed in the USA have a 16.5% higher Tobin’s Q; - Firms which were cross-listed in the USA have significant higher valued growth opportunities. Cheung et al. (2006) Relation level of investor protection and RPTs Financial / ownership and corporate governance data of 603 Hong Kong listed companies and 375 filings concerning RPTs for the years 1998 till 2000 Regression Negative relation between level of investor protection (firms with Chinese owners, in Hong Kong) and RPTs. Figure 5: Summarizing table compliance/disclosure studies Authors Object of study Sample Methodology Outcome Backhuijs & Braam (2008) Information provision with regard to related parties 73 Dutch companies for the year 2007 Disclosure / compliance study - Most companies mentioned parent (96%) and associated companies (81%) in their consolidated financial statement - Companies mainly mentioned the nature of the transaction and the amount of transaction, slightly more than half of the firms mentioned the amount of outstanding balances. Figure 6: Summarizing table empirical research firm characteristics and RPTs / firm value Authors Object of study Sample Methodology Outcome