Vagabond shoes longing to stray: Why foreign firms list in the United States

Blass, Asher; Yafeh, Yishay

doi:10.1016/s0378-4266(00)00090-x

Cited by 134 publications

(104 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…22 Therefore, on the whole the motivation for a US listing appears to be the need of an equity infusion by rapidly expanding, highly levered companies that plan to expand their sales internationally and/or belong to high-tech industries. The latter finding is consistent with Blass and Yafeh (1999), who report that Israeli and Dutch firms which 22 In addition, transatlantic listing seems to be a one-way street for European companies. A European company that is already listed abroad within Europe is not discouraged from seeking a US listing; but once a company is cross-listed in the US, it is significantly less likely to cross-list abroad within Europe.…”

Section: Apart From These Common Features European Companies That Crsupporting

confidence: 82%

“…Evidence in this direction is already provided by Blass and Yafeh (1999), who show that Israeli and Dutch firms which list in the US (bypassing their respective home markets) are relatively high-tech and fast growing. 6 Access to cheaper capital not only through the stock market but also through the bond market and trade credit through suppliers.…”

Section: C) Relying On Foreign Expertisementioning

confidence: 94%

See 1 more Smart Citation

The Geography of Equity Listing: Why Do European Companies List Abroad?

2000

View full text Add to dashboard Cite

This paper documents the aggregate trends in the foreign listings of companies and analyzes both their distinctive pre-listing characteristics and their post-listing performance relative to other companies. In the 1986-97 interval, many European companies listed abroad, but did so mainly on US exchanges. At the same time, the number of US companies listed in Europe decreased. The cross-listings of European companies appear to have sharply different motivations and consequences depending on whether they cross-list in the United States or within Europe. In the first case, companies pursue a strategy of rapid expansion fuelled by high leverage before the listing and large equity issues after the listing. They rely increasingly on export markets both before and after the listing, and tend to belong to high-tech industries. In the second case, companies do not grow more than the control group, and increase their leverage after the cross-listing. Also, they fail to increase their foreign sales in the wake of the cross-listing. The only common features of the two groups are their large size, high foreign sales before cross-listing and high R&D spending after cross-listing. Keywords:cross-listings, going public, initial public offerings, geography JEL classification:G15, G30, G39

show abstract

Section: Apart From These Common Features European Companies That Crsupporting

confidence: 82%

Section: C) Relying On Foreign Expertisementioning

confidence: 94%

The Geography of Equity Listing: Why Do European Companies List Abroad?

2000

View full text Add to dashboard Cite

show abstract

“…Recent IB and international finance studies suggest that foreign affiliates tend to be at a disadvantage as they often suffer from liability of foreignness (Blass & Yafeh, 2001;Bell et al, 2012). Foreign affiliates usually lack knowledge about local cultures and networks connecting them with important actors in host country's economy.…”

Section: Epu and Derivatives Usementioning

confidence: 99%

Policy uncertainty, derivatives use, and firm-level FDI

2017

View full text Add to dashboard Cite

We explore the link between uncertainty in economic policy, firm-level FDI, and firm hedging behavior -building upon a newspaper-based index of economic policy uncertainty (EPU). We find that the relative difference in EPU between home and host country has a significant relationship with FDI. Firms increase their FDI level in countries, which have a low level of EPU relative to their home country. In addition, firms use derivatives more intensively in response to an increase in EPU. Interestingly, the link between EPU and corporate derivatives use varies according to the type of firm. Domestic MNCs make the most effective use of derivatives to hedge against EPU exposure. Journal of International Business Studies (2018) 49, 96-126.

show abstract

“…There has been very little prior research on why these firms choose to forego their domestic capital markets or how they choose among foreign capital markets. In recent years, scholars have explored the decision IPO firms face when choosing between domestic stock exchanges (Bruton and Prasad, 1997), and the choice between a domestic or a foreign public offering (Ding, Nowak, andZhang, 2010, Blass andYafeh, 2001). Although these studies have emphasized the importance of strategic choices firms make when considering equity finance, the studies did not explore contextual factors that may affect these choices.…”

Section: Introductionmentioning

confidence: 99%

“…make very different choices regarding whether to undertake their IPO in the United States (U.S.) or United Kingdom (U.K.)? Although research in finance (e.g., Blass and Yafeh, 2001;Pagano et al, 2002) suggests that market choice may have important implications in terms of visibility, media recognition, and the ability to raise additional equity or debt and management of investor expectations, yet it still does not explain how firms decide between markets that generate similar benefits.…”

Section: Introductionmentioning

confidence: 99%

Foreign IPO capital market choice: Understanding the institutional fit of corporate governance

Moore

Bell

Filatotchev

et al. 2012

Strategic Management Journal

View full text Add to dashboard Cite

While product market choices have been central to strategy formulation for firms in the past, the integration of financial markets makes the choice of capital markets an equally important strategic decision. We advance a comparative institutional perspective to explain capital market choice by firms making an IPO in a foreign market. We find that internal governance characteristics (founder-CEO, executive incentives, and board independence) and external network characteristics (prestigious underwriters, degree of venture capitalist syndication, and board interlocks) are significant predictors of foreign capital market choice by foreign IPO firms. Our results suggest foreign IPO firms select a host market where the firms' governance characteristics and third party affiliations fit the host market's institutional environment.3

show abstract

Vagabond shoes longing to stray: Why foreign firms list in the United States

Cited by 134 publications

References 28 publications

The Geography of Equity Listing: Why Do European Companies List Abroad?

The Geography of Equity Listing: Why Do European Companies List Abroad?

Policy uncertainty, derivatives use, and firm-level FDI

Foreign IPO capital market choice: Understanding the institutional fit of corporate governance

Contact Info

Product

Resources

About