International Cross‐Listings and Subsequent Security‐Market Choices: Evidence from ADRs

31 Pages Posted: 5 Apr 2013

See all articles by Narjess Boubakri

Narjess Boubakri

American University of Sharjah - School of Business and Management; HEC Montreal - Department of Finance

Jean‐Claude Cosset

HEC Montreal

Anis Samet

American University of Sharjah - School of Business and Management

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Date Written: May 2013

Abstract

We study the link between the attributes of American depositary receipt (ADR)‐listed firms and their post‐listing security‐market choices. We find that developed market firms are more likely to issue equity and debt than their emerging market counterparts. Furthermore, we find that large firms are more likely to issue debt and less likely to issue equity. When we examine locations where ADR firms raise their capital, we find that firms originating from countries where the protection of minority shareholders is weak are more likely to issue debt on their home markets and less likely to issue debt on international markets (excluding U.S. markets). Furthermore, ADR firms originating from developed (emerging market) countries are more (less) likely to issue their equity on their domestic markets and less (more) likely to issue equity on international markets (excluding U.S. markets).

Keywords: cross‐listing, financing, equity, debt, Sarbanes‐Oxley

JEL Classification: G15, G32, G34, K00

Suggested Citation

Boubakri, Narjess and Cosset, Jean‐Claude and Samet, Anis, International Cross‐Listings and Subsequent Security‐Market Choices: Evidence from ADRs (May 2013). Financial Review, Vol. 48, Issue 2, pp. 311-341, 2013. Available at SSRN: https://ssrn.com/abstract=2245399 or http://dx.doi.org/10.1111/fire.12005

Narjess Boubakri

American University of Sharjah - School of Business and Management ( email )

P.O. Box 26666
Sharjah
United Arab Emirates

HOME PAGE: http://www.aus.edu

HEC Montreal - Department of Finance ( email )

3000 Chemin de la Cote-Sainte-Catherine
Montreal, Quebec H3T 2A7
Canada

Jean‐Claude Cosset

HEC Montreal

Anis Samet

American University of Sharjah - School of Business and Management ( email )

P.O. Box 26666
Sharjah
United Arab Emirates

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