Exploring the effect of board interlocks on cross-listing valuation through the information environment
This thesis explores the moderating effects of board interlocks on the relation between the information environment and firm valuation for European companies cross-listing in the U.S. between 1997-2014. A sample is used of 42 cross-listing companies and 34 non cross-listing companies from 11 different countries and 18 industries. Evidence is found that board interlocks have a negative but insignificant association with the relation between both the information environment proxies, analyst following and forecast accuracy, and firm valuation, measured by Tobin’s Q. This is determined by conducting random effects panel data regressions with a time window of 3 years around the cross-listing year. Other results suggests that cross-listing has a positive effect on the information environment through analyst following. Furthermore, evidence is found that the information environment positively affects firm valuation through forecast accuracy.
Faculteit der Managementwetenschappen