Going public abroad

Cecilia Caglio, Kathleen Weiss Hanley and Jennifer Marietta-Westberg

Journal of Corporate Finance, 2016, vol. 41, issue C, 103-122

Abstract: We examine the decision of a firm to go public abroad and list securities outside their country of origin. Foreign IPO issuers are more likely to choose a global underwriter but only if the home country is less financially integrated. We find that the probability of conducting a foreign IPO is higher if the home country has a less developed stock market, its disclosure regime is weaker and is less financially integrated. Using a matched sample, we show that foreign IPOs raise more capital than their domestic counterparts. Finally, the determinants of the choice of a US listing are unique. Our results suggest that the rise of global underwriters facilitates the movement of capital across nations and contributes to world financial globalization.

Keywords: IPOs; Globalization; Underwriter; Financial Integration; Listing (search for similar items in EconPapers)
JEL-codes: G1 G15 G24 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:41:y:2016:i:c:p:103-122

DOI: 10.1016/j.jcorpfin.2016.07.004

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