Modern theories of capital structure have traveled a long way since the publication of the pioneering article by Modigliani and Miller in 1958. All the theories that have subsequently emerged tried to answer the moot question as ‘what are the factors that affect capital structure decisions’. In the process of their enquiry scholars have identified several dimensions of imperfections which can affect capital structure decisions of firms. Such imperfections may arise due to nature of contract, transaction cost, conflict of interest, asymmetry of information, institutional structure etc. Among these factors, institution is unique in the sense that institutions play a dual role on one hand, the presence of institution itself creates imperfection, and on the other hand, presence of institution is necessary to correct the imperfection if it is arising out of asymmetry of information.
The analysis focuses on the stock price impact of firms’ U.S. cross-listing on home-market rival firms. A theoretical model is presented that indicates the effect is ambiguous, depending upon the positive price impact of a decrease in the cost of capital for rival firms versus a negative price impact of a market perception of lower growth prospects for rivals. The empirical work uses both listing dates and announcement dates of forthcoming ADR programs. An event study approach is employed to analyze the impact on the home market price of the rival firm around the dates of listing and announcement of listing. We find negative cumulative average abnormal returns for the rival firms around the announcement and listing dates, consistent with rival firms being hurt by the listing. The evidence suggests that investors see rivals as having poorer growth prospects relative to the listing firm. We also find evidence that the positive effect that listers experience is associated with their being viewed as having better growth prospects.
When foreign firms list their shares on a U.S. stock exchange, this may affect the stock price of the listing firm. It may also affect stock prices of firms in the same industry and country as the listing firm, as investors revise their expectations of firm values. This paper studies the stock price impact on home-market rival firms of firms’ cross-listing in the United States.
Library collections are essential to providing the information services that patrons demand. Libraries acquire books, journals, films, prints, photographs, musical scores, maps, and manuscripts—regardless of genre or format—to meet the research needs of their present and future users. The collections, and the services that make these collections accessible, are essential to fulfilling the mission of a library. For research institutions such as university libraries, the collections often represent the accumulated capital of generations of scholars and creators (in many cases, faculty and former faculty) and constitute the raw material of future scholarship. For public libraries, the collections are the most tangible expression of the public trust that has been vested in them. The collections are the tools that libraries use to make information freely accessible to the citizens of the communities they serve.
Most libraries have traditionally focused more on the costs of acquiring and maintaining collections than on their potential as assets that are vital to institutional productivity. Without understanding the value of collections as assets to the home institution, however, it is difficult to determine how best to make those assets most productive. And without understanding risks to these assets, it is hard to protect them against future loss or damage.
