Cross-border regulatory cooperation and cash holdings: Evidence from US-listed foreign firms

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2024-07-31 DOI:10.1016/j.bar.2024.101449

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Abstract

We investigate the effect of cross-border regulatory cooperation on the cash holdings of firms cross-listed on US stock exchanges. The staggered adoption of the Multilateral Memorandum of Understanding (MMoU) facilitates cooperation among securities regulators around the world and expands their enforcement capabilities against foreign firms. Using a difference-in-differences design, we find that US-listed foreign firms significantly reduce their cash holdings after their home countries sign the MMoU, suggesting that the threat of increased SEC enforcement induced by regulatory cooperation disciplines corporate insiders from stockpiling cash holdings to enjoy private benefits of control. Information opacity and the cost of capital are two of the channels through which the threat of increased SEC enforcement affects cash holdings. The reduction in cash holdings is more pronounced for foreign firms from countries with weaker governance. After the MMoU, foreign firms make faster cash adjustments toward target levels, they reduce cash by making payouts, and their cash is valued more by investors.

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跨境监管合作与现金持有：来自在美国上市的外国公司的证据

我们研究了跨境监管合作对在美国证券交易所交叉上市的公司现金持有量的影响。多边谅解备忘录》（MMoU）的交错通过促进了全球证券监管机构之间的合作，并扩大了他们对外国公司的执法能力。利用差分法设计，我们发现在美国上市的外国公司在其母国签署《多边谅解备忘录》后会大幅减少现金持有量，这表明监管合作带来的美国证券交易委员会执法力度加大的威胁会约束公司内部人员囤积现金以享受控制权带来的私人利益。信息不透明和资本成本是证券交易委员会执法力度加大的威胁影响现金持有量的两个渠道。对于来自治理较弱国家的外资企业来说，现金持有量的减少更为明显。在《多边谅解备忘录》实施后，外国公司会更快地将现金调整到目标水平，它们会通过派息来减少现金，投资者也会更看重它们的现金。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.