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The sequencing of stock market liberalization events and corporate financing decisions

  • Thomas J. Flavin

    ()

    (Economics,Finance and Accounting, National University of Ireland, Maynooth)

  • Thomas O'Connor

    ()

    (Economics,Finance and Accounting, National University of Ireland, Maynooth)

We examine if the sequence of stock market liberalization events matters for corporate financing choices. We contrast firms who attain ‘investable’ status through domestic reforms with those who do so by issuing American Depository Receipt programs. We find that the first liberalization event prompts similar corporate responses regardless of the path followed. However, we find differential effects between firms who issue ADRs after realizing financial liberalization and those who use ADR initiations to achieve this status. Here, the sequence matters and the capital structure choices of the two groups are very different.

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File URL: http://repec.maynoothuniversity.ie/mayecw-files/N2021009.pdf
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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n2021009.pdf.

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Length: 25 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:may:mayecw:n2021009.pdf
Contact details of provider: Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting

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