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The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis

This study examines the impact of regulatory frameworks on the firm value of cross-listed companies in Hong Kong and Mainland China, employing Institutional and Agency theories as analytical lenses. The research primarily utilizes quantitative methodologies, analysing secondary data sourced from fin...

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Main Authors: Yi, Chen, Abdul Latiff, Ahmed Razman
Format: Article
Published: Fayrel Management Services 2024
Online Access:http://psasir.upm.edu.my/id/eprint/111629/
https://dreamjournal.my/index.php/DREAM/article/view/225
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spelling my.upm.eprints.1116292024-07-19T01:45:33Z http://psasir.upm.edu.my/id/eprint/111629/ The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis Yi, Chen Abdul Latiff, Ahmed Razman This study examines the impact of regulatory frameworks on the firm value of cross-listed companies in Hong Kong and Mainland China, employing Institutional and Agency theories as analytical lenses. The research primarily utilizes quantitative methodologies, analysing secondary data sourced from financial databases and regulatory bodies. Key findings indicate that stringent regulatory compliance in Hong Kong correlates with higher firm values compared to Mainland China. Effective enforcement of regulations in Hong Kong also reduces information asymmetry, thereby increasing firm value. Conversely, regulatory discrepancies between the two regions increase perceived investment risks, negatively impacting firm value. These results underscore the importance of robust, consistent regulatory practices in enhancing corporate legitimacy and investor confidence. The study acknowledges limitations related to the reliance on secondary data and the dynamic nature of regulatory frameworks, which may affect the timeliness and applicability of the findings across different regions. Future research directions include conducting longitudinal studies to assess the temporal effects of regulatory changes, incorporating qualitative analyses to deepen understanding of corporate responses to regulatory environments, and expanding the geographical scope to include comparisons with other global markets. This research contributes to the existing literature by highlighting how regulatory alignment and enforcement influence the economic valuation of cross-listed firms, providing valuable insights for regulators and corporate managers aiming to optimize firm value in complex regulatory landscapes. Fayrel Management Services 2024 Article PeerReviewed Yi, Chen and Abdul Latiff, Ahmed Razman (2024) The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis. Journal of Digitainability, Realism & Mastery (DREAM), 3 (4). pp. 10-25. ISSN 2948-4383 https://dreamjournal.my/index.php/DREAM/article/view/225 10.56982/dream.v3i04.225
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description This study examines the impact of regulatory frameworks on the firm value of cross-listed companies in Hong Kong and Mainland China, employing Institutional and Agency theories as analytical lenses. The research primarily utilizes quantitative methodologies, analysing secondary data sourced from financial databases and regulatory bodies. Key findings indicate that stringent regulatory compliance in Hong Kong correlates with higher firm values compared to Mainland China. Effective enforcement of regulations in Hong Kong also reduces information asymmetry, thereby increasing firm value. Conversely, regulatory discrepancies between the two regions increase perceived investment risks, negatively impacting firm value. These results underscore the importance of robust, consistent regulatory practices in enhancing corporate legitimacy and investor confidence. The study acknowledges limitations related to the reliance on secondary data and the dynamic nature of regulatory frameworks, which may affect the timeliness and applicability of the findings across different regions. Future research directions include conducting longitudinal studies to assess the temporal effects of regulatory changes, incorporating qualitative analyses to deepen understanding of corporate responses to regulatory environments, and expanding the geographical scope to include comparisons with other global markets. This research contributes to the existing literature by highlighting how regulatory alignment and enforcement influence the economic valuation of cross-listed firms, providing valuable insights for regulators and corporate managers aiming to optimize firm value in complex regulatory landscapes.
format Article
author Yi, Chen
Abdul Latiff, Ahmed Razman
spellingShingle Yi, Chen
Abdul Latiff, Ahmed Razman
The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
author_facet Yi, Chen
Abdul Latiff, Ahmed Razman
author_sort Yi, Chen
title The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
title_short The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
title_full The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
title_fullStr The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
title_full_unstemmed The role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
title_sort role of regulatory frameworks in shaping the firm value of cross-listed companies: a comparative analysis
publisher Fayrel Management Services
publishDate 2024
url http://psasir.upm.edu.my/id/eprint/111629/
https://dreamjournal.my/index.php/DREAM/article/view/225
_version_ 1805889939700711424
score 13.211869

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