Vagabond Shoes Longing to Stray: Why Foreign Firms List in the United States

27 Pages Posted: 7 Nov 2000

See all articles by Yishay Yafeh

Yishay Yafeh

Hebrew University of Jerusalem - Jerusalem School of Business Administration; European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)

Asher Blass

Bank of Israel - Research Department

Abstract

How do firms that go public decide whether to list on a major stock exchange or locally? Using a unique data set on Israeli IPO?s in the US and Tel Aviv, we show that companies that list in the US are young and overwhelmingly high-tech oriented. We argue that high-quality innovative firms are willing to incur additional costs associated with listing in the US in order to reveal their value and distinguish themselves from firms that issue stock back home. Costs of listing in the US include first day underpricing and relinquishing corporate control.

Keywords: IPO, Foreign Listing, Financing Innovation.

JEL Classification: G1, G15, G32

Suggested Citation

Yafeh, Yishay and Blass, Asher, Vagabond Shoes Longing to Stray: Why Foreign Firms List in the United States. Available at SSRN: https://ssrn.com/abstract=248948 or http://dx.doi.org/10.2139/ssrn.248948

Yishay Yafeh (Contact Author)

Hebrew University of Jerusalem - Jerusalem School of Business Administration ( email )

Mount Scopus
Jerusalem 91905
Israel
+972 2 588 3081 (Phone)
+972 2 588 1341 (Fax)

HOME PAGE: http://bschool.huji.ac.il/facultye/yafeh/

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Asher Blass

Bank of Israel - Research Department ( email )

PO Box 780
Jerusalem 91007
Israel
+97 2 6552 600 (Phone)
+97 22 6552 660 (Fax)

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