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Going Public Abroad

48 Pages Posted: 19 Mar 2010 Last revised: 19 Jun 2013

Cecilia Caglio

Board of Governors of the Federal Reserve System

Kathleen Weiss Hanley

Lehigh University - College of Business & Economics

Jennifer Marietta-Westberg

U.S. Securities and Exchange Commission

Multiple version iconThere are 2 versions of this paper

Date Written: November 8, 2012

Abstract

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.

Keywords: IPO, competitiveness, foreign listing, cross-listing

JEL Classification: G30, G32, F36

Suggested Citation

Caglio, Cecilia and Hanley , Kathleen Weiss and Marietta-Westberg, Jennifer, Going Public Abroad (November 8, 2012). Available at SSRN: https://ssrn.com/abstract=1572949 or http://dx.doi.org/10.2139/ssrn.1572949

Cecilia Caglio

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Kathleen Hanley

Lehigh University - College of Business & Economics ( email )

Bethlehem, PA 18015
United States

Jennifer Marietta-Westberg (Contact Author)

U.S. Securities and Exchange Commission ( email )

100 F St NE
Washington, DC 20549
United States

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