2002 on the value of firms and on the cross-listing choice of firms destined to three
major markets in North America, Asia and Europe. We use dynamic panel data
methods and treatment effects methods to find that Sarbanes-Oxley has had a negative
impact on the value of firms worldwide. However, the effect of Sox on the crosslisting
decision is positive in the US destination and negative in the Germany
destination; and the Hong Kong destination seems to attract cross-listing of firms with
lower valuations relative to the US and Germany destination. In terms of the crosslisting
decision, the evidence is in favor of crowding in the market where the
accounting standards are better, lending support to the signaling and bonding
hypotheses of cross-listing choice.