AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
U.S. Further investigation indicates that in an environment with inherent stock overvaluation, the absence of
cross-listing premiums is mainly a result of a downward price correction (toward the fundamental values) once
U.S. listing allows for an enhanced capitalization of firm-specific information. Consistent with the price
correction hypothesis, cross-listed firms are found to be generally less overvalued, more informative, and exhibit
a stronger price-earnings relationship. (For more information, please contact: Liu Wang, Providence College,
USA: lwang@providence.edu)
Relationship Lending versus Arm's Length Debt - A Cultural Perspective
Astrid Juliane Salzmann, RWTH Aachen University
Ron Christian Antonczyk, RWTH Aachen University
Wolfgang Breuer, RWTH Aachen University
We examine how cultural preferences impact the financing decision of firms. In particular, we hypothesize that
firms in countries with a higher degree of long-term orientation tend to prefer bank finance, whereas firms in
countries with a higher degree of short-term orientation tend to prefer bond finance. Based on a thorough
theoretical investigation and an extensive empirical analysis using a large, worldwide dataset, we find strong
support for our hypothesis on the role of culture in financial intermediation. The results are robust to controlling
for other determinants of the choice of debt financing as well as alternative measures of culture. (For more
information, please contact: Astrid Juliane Salzmann, RWTH Aachen University, Germany:
astrid.salzmann@bfw.rwth-aachen.de)
The Emperor's New Clothes: Characteristics of the Chinese Stock Listing Diaspora
Abigail S. Hornstein, Wesleyan University
This paper provides two explanations for why Chinese firms are choosing to have only one listing on particular
foreign stock exchanges. First, Chinese firms may present greater informational asymmetries to foreign
investors as they are often parts of corporate pyramids or under state control. Second, there is substantial interprovincial
and international variation in the regulatory and operating environment of the headquarters'
locations. The empirical results show that firms that list on the U.S. and U.K. exchanges are more likely to be at
the top of a corporate pyramid, come from the better regulated provinces of China, and are less likely to have
foreign headquarters. (For more information, please contact: Abigail S. Hornstein, Wesleyan University, USA:
ahornstein@wesleyan.edu)
Session: 3.4.9 - Competitive
Track: 11 - SMEs and Entrepreneurship
SME Exporting
Presented On: July 3, 2012 - 14:30-15:45
Chair: Shameen Prashantham, Nottingham University Business School
Relationalism in the SMEs export channel
Youngmi Baek, Sogang University
This research identifies affecting factors of relationship commitment and relations to the financial performance
in the export distribution channel. For the theoretical basis of research model, this research adapted RBV, TCE
and social exchange theory. Resource based determinants (firm size, brand value, technological capability and
fame) and transaction cost determinants (environmental uncertainty, industry and psychic distance) are
considered as the significant factors to affect relationship commitment in the export distribution channel. In
AIB 2012 Conference Proceedings
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