Going Public Abroad
Board of Governors of the Federal Reserve System
Kathleen Weiss Hanley
Lehigh University - College of Business & Economics
U.S. Securities and Exchange Commission
November 8, 2012
This paper examines the decision to go public abroad using a sample of 17,808 IPOs. Although only 6% of initial public offerings are offered abroad, these represent approximately 25% of total IPO proceeds. We find that alleviating informational frictions in order to obtain greater offering proceeds is an important determinant of the decision to go public abroad. Foreign and global IPOs originate from countries with significantly fewer recent IPOs in the same industry, less developed capital markets, and lower disclosure standards. Contrary to assumptions in prior research, we also show that the determinants of whether to go public abroad or to go public at home and cross-list later are not similar. In addition, we find that the preferences for going public in certain foreign markets have changed over time and the factors that impact the choice of listing market are not consistent across all countries.
Number of Pages in PDF File: 48
Keywords: IPO, competitiveness, foreign listing, cross-listing
JEL Classification: G30, G32, F36
Date posted: March 19, 2010 ; Last revised: June 19, 2013
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