Does Bonding Hypothesis Hold?Evidences From Switzerland and Austria ADRs

• Main Authors: TSAI, YI-CHEN, 蔡禕塵
• Other Authors: WU, HSU-CHE
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/58456432766401695747

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 104 === To examine whether cash holding and performance of companies change after ADR issuance, I choose Switzerland and Austria companies which issued American Depositary Receipt (ADR) as a sample. Initially, I break down the full sample by country. Then, I split the sample into two groups: sponsored ADRs and unsponsored ADRs, to test whether the different regulations affect the degree of bonding effects. The results show that, the cash holdings of Austria companies which issued sponsored ADR increased significantly after the companies cross-listed in the US. This supports the hypothesis expectation. The cash holding of Austria companies which issued unsponsored ADR decreased significantly after the companies cross-listed in the US. The results also show that, the performance of Switzerland and Austria companies as a whole, increased significantly after companies issued ADRs. The performance of Switzerland companies increased after the companies cross-listed in the US no matter what types of ADR they issued. On the other hand, Austria companies which issued sponsored ADR performed better after they cross-listed in the US, which confirms the hypothesis expectation.