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The sequencing of stock market liberalization events and corporate financing decisions

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  • Flavin, Thomas
  • O'Connor, Thomas

Abstract

We examine the impact of stock market liberalization events on corporate financing choices. We analyze differences between 'investable' firms and those who cross-list on international markets and show that an initial act of liberalization evokes similar responses across all firms. Furthermore, we examine the importance of the order in which these events occur. We find evidence of different behavior depending on the sequence of events and across categories of listing. Level 3 ADRs confer greatest equity raising post-listing, suggesting that US lists still have benefits over and above London.

Suggested Citation

  • Flavin, Thomas & O'Connor, Thomas, 2010. "The sequencing of stock market liberalization events and corporate financing decisions," Emerging Markets Review, Elsevier, vol. 11(3), pages 183-204, September.
  • Handle: RePEc:eee:ememar:v:11:y:2010:i:3:p:183-204
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    Cited by:

    1. repec:eee:finlet:v:21:y:2017:i:c:p:85-91 is not listed on IDEAS
    2. Thomas O'Connor, 2014. "Legal bonding, investor recognition, and cross-listing premia in emerging markets," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 4(3), pages 209-239.
    3. Jonathan A. Batten & Karren Lee-Hwei Khaw & Martin R. Young, 2014. "Convertible Bond Pricing Models," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 775-803, December.
    4. Batten, Jonathan A. & Szilagyi, Peter G., 2012. "International banking during the Global Financial Crisis: U.K. and U.S. perspectives," International Review of Financial Analysis, Elsevier, vol. 25(C), pages 136-141.
    5. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
    6. Jyh-Dean Hwang, 2013. "Are There Valuation and Operating Performance Gains from International Cross Listing? Evidence from Taiwan’s Depositary Receipt Issuers," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(2), pages 137-163, December.
    7. Bonga-Bonga, Lumengo, 2018. "Uncovering equity market contagion among BRICS countries: An application of the multivariate GARCH model," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 36-44.
    8. Thomas O'Connor & Thomas Flavin, 2013. "The Effects of Ownership Structure on Corporate Financing Decisions: Evidence from Stock Market Liberalization," International Review of Finance, International Review of Finance Ltd., vol. 13(3), pages 383-405, September.
    9. Buchanan, Bonnie G. & English II, Philip C. & Gordon, Rachel, 2011. "Emerging market benefits, investability and the rule of law," Emerging Markets Review, Elsevier, vol. 12(1), pages 47-60, March.
    10. repec:spr:eurasi:v:3:y:2013:i:2:d:10.14208_ebr.2013.03.02.002 is not listed on IDEAS

    More about this item

    Keywords

    Financing choices Debt structure Investability Cross-listing;

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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