The Review of Finance and Banking

65-76

Authors: Yi-Pei Chen, Askar Koshoev

Using a sample of rapidly developing “Four Tigers” (i.e. Hong Kong, Singapore, South Korea, and Taiwan), this paper investigates the influence of the cross-listing effect and the payout policy on a firm performance and valuation. While the payout policy does not significantly affect abnormal returns for both cross-listed and non-cross-listed companies, the payout policy of cross-listed firms is positively correlated with earnings growth. Further investigation reveals that the companies with higher investment opportunities, represented by Tobin’s Q, get positive reaction by foreign investors when they signal about future prospects by paying out more cash dividends. Interestingly, the domestic investors do not share the same opinion and prefer the firms to accumulate the funds for the execution of future investment projects instead of dividend distribution. The results provide evidence that the firms with investment opportunities in combination with positive payouts better stimulate earnings growth if they are cross-listed.

95-108

Authors: Dan Gabriel Anghel

In the ongoing quest to better understand investor psychology and behavior, we study the effects of popular sporting events on investor sentiment and, consequently, on market returns in the frontier stock market of Romania. We analyze sporting events that involve teams–football (soccer) and handball–and also ones that center on individuals–tennis. We find some signs that negative outcomes significantly alter post-event investor sentiment, which in turn influences market prices. However, the impact is small from an economic perspective and it is not persistent in time, being reversed in at most three trading days. Overall, we find that investor sports sentiment in Romania is weak.