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International Cross-Listing, Firm Performance, and Top Management Turnover: A Test of the Bonding Hypothesis

  • UGUR LEL
  • DARIUS P. MILLER
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We examine a primary outcome of corporate governance, namely, the ability to identify and terminate poorly performing CEOs, to test the effectiveness of U.S. investor protections in improving the corporate governance of cross-listed firms. We find that firms from weak investor protection regimes that are cross-listed on a major U.S. Exchange are more likely to terminate poorly performing CEOs than non-cross-listed firms. Cross-listings on exchanges that do not require the adoption of stringent investor protections (OTC, private placements, and London listings) are not associated with a higher propensity to remove poorly performing CEOs. Copyright (c) 2008 The American Finance Association.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1540-6261.2008.01377.x
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Article provided by American Finance Association in its journal The Journal of Finance.

Volume (Year): 63 (2008)
Issue (Month): 4 (08)
Pages: 1897-1937

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Handle: RePEc:bla:jfinan:v:63:y:2008:i:4:p:1897-1937
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