Going Public Abroad

49 Pages Posted: 6 Nov 2013

See all articles by Cecilia Caglio

Cecilia Caglio

Board of Governors of the Federal Reserve System

Kathleen Weiss Hanley

Lehigh University - College of Business

Jennifer Marietta-Westberg

U.S. Securities and Exchange Commission

Multiple version iconThere are 2 versions of this paper

Date Written: October 2, 2013

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, cross listing

JEL Classification: G3, G15

Suggested Citation

Caglio, Cecilia and Hanley, Kathleen Weiss and Marietta-Westberg, Jennifer, Going Public Abroad (October 2, 2013). FEDS Working Paper No. 2013-68. Available at SSRN: https://ssrn.com/abstract=2350821 or http://dx.doi.org/10.2139/ssrn.2350821

Cecilia Caglio (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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

Kathleen Weiss Hanley

Lehigh University - College of Business ( email )

Bethlehem, PA 18015
United States

Jennifer Marietta-Westberg

U.S. Securities and Exchange Commission ( email )

100 F St NE
Washington, DC 20549
United States

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