THE ROLE OF BOARD STRUCTURE IN THE CHOICE OF ADRS

Min-Lee Chan ； Cho-Min Lin ； Chiao-Chen Hung

《Advances in Financial Planning and Forecasting》 7期 (2016/10) Pp. 165-190

https://doi.org/10.6292/AFPF.2016.07.08

摘要

We investigate how board structure affects the choice of ADR for Taiwan and Hong Kong listed firms during 1992 to 2009. We find that board structure does play a role in the choice of ADR. Taiwan listed firms with CEO duality tend to choose to cross list in the US while for Hong Kong listed firms, higher ratio of independent directors will significantly increase the probability to cross list in the US. Moreover, we interestedly find that reallocation among three choices (Level I, Level III, and Rule 144A) of ADR occurs after SOX; and this choice reallocation is significantly influenced by the independent directors. After SOX, Rule 144A is preferred to Level I. Besides, the higher ratio of independent directors would increase the probability to choose Level I more than to choose Rule 144A and Level III when cross-listing.

關鍵字

Board Structure ； ADR ； Multinomial Logit Model

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