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International Cross‐Listings and Subsequent Security‐Market Choices: Evidence from ADRs
Author(s) -
Boubakri Narjess,
Cosset JeanClaude,
Samet Anis
Publication year - 2013
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/fire.12005
Subject(s) - equity (law) , business , capital market , debt , emerging markets , receipt , cross listing , equity capital markets , financial system , shareholder , monetary economics , finance , economics , accounting , private equity , corporate governance , political science , law
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).