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The sequencing of stock market liberalization events and corporate financing decisions

  • Flavin, Thomas
  • O'Connor, Thomas

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.

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File URL: http://www.sciencedirect.com/science/article/B6W69-4YT0596-1/2/713924bf983b69e30948ea3c782ab176
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Article provided by Elsevier in its journal Emerging Markets Review.

Volume (Year): 11 (2010)
Issue (Month): 3 (September)
Pages: 183-204

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Handle: RePEc:eee:ememar:v:11:y:2010:i:3:p:183-204
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620356

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