Non-U.S. firms have two options to converge toward U.S. capital market and legal regulations - to cross-list in the U.S. or to agree to be acquired by a U.S. bidder. We show that companies that have lower growth opportunities, are more capital intensive, and seek bonding benefits through...

The main goal of this paper is to help determine why the communist (and partly even transition) economies are substantially inefficient in comparison with their market counterparts. The reasons will be analyzed with the help of the profit maximization model (based on the efficiency wage theory)...