Equity cross-listings in the U.S. and the price of debt |
| |
Authors: | Ryan T Ball Luzi Hail Florin P Vasvari |
| |
Institution: | 1.Ross School of Business,University of Michigan,Ann Arbor,USA;2.The Wharton School,University of Pennsylvania,Philadelphia,USA;3.London Business School,London,UK |
| |
Abstract: | Using a large panel from 46 countries over 20 years, we find that non-U.S. firms issue corporate bonds more frequently and at lower offering yields following an equity cross-listing on a U.S. exchange. Firms issue more bonds through public offerings instead of private placements and in foreign markets rather than at home, in both cases at significantly lower yields. Moreover, the debt-related benefits are concentrated among firms domiciled in countries with less private benefits of control, efficient debt enforcement, and developed bond markets, suggesting that equity cross-listings cannot completely offset the impact of weak home country institutions. The results support the notion that the monitoring, transparency, and visibility benefits brought about by equity cross-listings on U.S. exchanges are valuable to bond investors. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|