Theses and Dissertations

Date of Award


Document Type


Degree Name

Doctor of Philosophy (PhD)


Business Administration

First Advisor

Dr. Diego Escobari

Second Advisor

Dr. Salvador Contreras

Third Advisor

Dr. Thanh Ngo


I investigate the performance and earnings management of firms that cross-list in foreign markets. In the first essay, I analyze and compare the underpricing and buy-and-hold abnormal returns of depositary receipt equity offerings with preceding Initial Public Offerings (IPOs) and Seasoned Equity Offerings (SEOs) of the same firms to identify differences and motivations of equity offerings free of any matching bias. I find that domestic equity offerings entail significantly larger underpricing than subsequent foreign equity offerings. The average buy-and-hold abnormal returns of depositary receipt equity offerings are significantly lower than the underlying firm’s performance at preceding domestic equity issuances over holding periods of 1 to 5 years after the respective issuances. Furthermore, traditional matching techniques as applied in most research articles comparing the performance after IPOs and SEOs may significantly overstate the degree of aftermarket performance and significantly understate the degree of underpricing. The second essay examines the existence of real and accrual-based earnings management around cross-listings in foreign markets. The results indicate that firms actively manage their earnings around cross-listing events using both, accrual and real earnings management. Real earnings management is the more favorable earnings method in comparison to accrual-based earnings management, especially for American Depositary Receipts (ADR) cross-listed via level II and III. Finally, firms listing via a sponsoring investment bank manage their real earnings significantly more than firms listed via unsponsored ADRs.


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