| In 2007 the SEC introduced Rule 12h-6, which significantly reduced the requirements for cross-listed firms to leave U.S. markets. While the benefits and costs of cross-listing in the U.S. have been widely analyzed in prior literature, questions as to the impact of deregistration on firms, investors, and other parties have been raised given the increase in foreign firms leaving the U.S. over the past decade. In addition, the growing global adoption of International Financial Reporting Standards (IFRS) and worldwide regulatory developments over this time period have brought changes to the home markets to which deregistering firms return potentially influencing the impact of deregistration. This dissertation consists of two chapters that analyze samples of foreign cross-listed firms that voluntarily deregister from U.S. equity markets. In Chapter 1, I examine whether a benefit of cross-listing, improved accounting quality, is impacted when foreign firms deregister. In Chapter 2, I examine whether a cost of cross-listing, a fee premium paid to auditors, is impacted when foreign firms deregister. Additionally, in both chapters I analyze the characteristics of the home market that influence these associations. (Abstract shortened by ProQuest.). |
