| The thesis consists of three chapters on corporate financing.;Chapter 2 investigates whether cross-listing in the U.S. yields a valuation gain to Canadian firms and whether the valuation gain, if any, changes over time. Using the average treatment effect method through propensity score matching and pooled cross-sectional ordinary least squares regressions, the paper shows that Canadian firms experience an increase in Tobin's q on the year when they are listed in the U.S., but the valuation gain diminishes within two years after cross-listing. In addition, we find that, on average, cross-listed firms enjoy a higher Tobin's q than do non-cross listed firms, but the difference exists even before firms are cross-listed. For cross-listed firms, the average value of the q ratio in the years after cross-listing does not change relative to the q ratio in the years before cross-listing.;Chapter 3 documents and examines the adoption of performance-vested equity grants in CEO compensation contracts in Canada. An increasing number of firms have incorporated performance-vesting criteria into their equity (stock options and/or restricted share units) compensation package. The paper finds that larger firms and/or firms with better corporate governance are more likely to adopt performance-vested equity grants. In particular, the composition of the Board of Directors plays an important role in explaining the use of performance-vested equity grants. The paper also provides some evidence that attaching performance-vesting criteria to equity grants is associated with higher pay-performance sensitivity and stronger evidence that the use of performance equity grants tends to increase the level of total compensation to CEOs.;Key Words: Corporate Financing, Initial Public Offerings, Bookbuilding, Cross-Listing, Firm Valuation, Corporate Governance, Executive Compensation, Employee Stock Option.;Chapter 1 investigates how aggregate IPO filing volume responds to changes in stock market volatility. The underlying hypothesis is that the ability to discover investor valuations before deciding to sell shares gives firms filing with the SEC an 'option' on the uncertain offer price. This option has value not only in a strong stock market but also in a volatile market. Furthermore, option theory implies that the marginal effect of volatility is highest in 'normal' stock markets. The filing volume we study consists of all non-financial firms that filed with the SEC between 1984 and 2004. Controlling for factors shown to impact primary market activity, notably stock market returns, we find filing volume to be positively related to changes in market volatility, and the relation is especially pronounced when stock market return is at 'normal' levels, i.e. neither too high nor too low. We therefore find evidence in support of a distinct type of 'window of opportunity' for firms attempting to go public, one that is characterized not by a strong stock market but rather by increased market volatility. |
