Open AccessCorporate Governance and Firm Performance: Evidence From the ADRs of Tiger Cub Economies
Author(s) -
Lee-Hsien Pan,
Shuo Chen,
Chieh-Chung Wu,
K. C. Chen
Publication year - 2019
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v9i1.14578
Subject(s) - corporate governance , cross listing , business , tiger , listing (finance) , accounting , finance , computer security , computer science
This paper examines the effects of cross listing and Sarbanes-Oxley Act (SOX) on corporate governance and firm performance of the cross-listed firms from four Tiger Cub Economics: Indonesia, Malaysia, Philippines, and Thailand. We find that these non-U.S. firms that list their shares as American Depositary Receipts (ADRs) experience an improvement in corporate governance and a decrease in firm performance after issuing ADRs in the U.S. However, SOX appears to be effective in enhancing firm performance for these ADRs, though it has little impact on improving corporate governance.