Theses and Dissertations

Date of Award


Document Type


Degree Name

Doctor of Philosophy (PhD)


Business Administration

First Advisor

Dr. André V. Mollick

Second Advisor

Dr. Wanling Huang

Third Advisor

Dr. Alejandro Serrano


This dissertation explores two interesting issues: international capital flows and cross-listings. With high volatility of capital flows and imbalance of capital flows between emerging and advanced economies, the topic of capital flow management is always attractive to researchers and policy makers. The first essay explore how capital flows in G20 countries are significantly impacted by pull and push factors. The results show that international capital flows are significantly associated with domestic financial development, which is measured by stock market liquidity and domestic credit. Moreover, international capital flows are affected by some push factors such as, the growth of world economy and fluctuations of crude oil price. Finally, this study controls for real interest rate, foreign currency, and capital restriction because government and macroprudential policies are key to stabilizing capital flows.

The second essay addresses two research questions: 1) how cross-listing activities are associated with domestic financial development, and 2) why do firms choose different types of DRs? The first section shows a threshold effect of financial development on country’s demands for DRs. When financial development is at a much lower stage, some countries have no explicit demands for cross-listing; when local stock markets become well-developed, most countries have great demands for cross-listings; however, after local stock market develop at very strong level, domestic financial development has less influence on demands of cross-listings.The second section shows difference in abnormal returns of domestic shares because of different choices of DRs. In the event study, the results show that developed countries earn positive abnormal returns around the ADR and GDR listing, but developing countries earn negative abnormal returns around GDR listing. Level I and unsponsored DRs bring positive abnormal returns to domestic shares, but Level II&III DRs come with some negative abnormal returns. And then, it explains that how choices of DRs are affected by domestic financial development, and it also controls for domestic disclosure index, political stability, cultural distance, and firm characteristics. Countries with lower financial development, worse disclosure requirements, political instability, and cultural similarity, are more likely to issue GDRs, Level II&III DRs, and sponsored DRs, which is consistent with the bonding and proximity hypotheses.


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