Foreign capital raising by Indian firms: An examination of domestic stock price response

Alex Meisami, Lalatendu Misra, Jamshid Mehran and Yilun Shi

Global Finance Journal, 2014, vol. 25, issue 3, 181-202

Abstract: We examine the domestic stock price response to foreign capital issuance by Indian firms. Firms have extensively used foreign equity and convertible foreign debt sources since 1994. The role of foreign investment bankers, size of the issue, firm's growth opportunities, and other factors are examined in the cross-sectional analysis of domestic stock price response. We find that firms experience positive stock price response to both equity and debt issues abroad, with greater response to issuance of American Depositary Receipts (ADRs), and financing high corporate growth.

Keywords: Stock price response; Capital raising; Financial market; Economic liberalization (search for similar items in EconPapers)
JEL-codes: F21 F34 G14 G15 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:25:y:2014:i:3:p:181-202

DOI: 10.1016/j.gfj.2014.10.002

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