TY - JOUR
T1 - Vagabond shoes longing to stray
T2 - Why foreign firms list in the United States
AU - Blass, Asher
AU - Yafeh, Yishay
PY - 2001/3
Y1 - 2001/3
N2 - How do firms that go public decide whether to list on a major stock exchange or locally? Using a unique data set on Israeli IPOs in the US and Tel Aviv, we show that companies that list in the US are young and overwhelmingly high-tech oriented. We argue that high-quality innovative firms are willing to incur additional costs associated with listing in the US in order to reveal their value and distinguish themselves from firms that issue stock back home. Costs of listing in the US include first day underpricing and relinquishing corporate control.
AB - How do firms that go public decide whether to list on a major stock exchange or locally? Using a unique data set on Israeli IPOs in the US and Tel Aviv, we show that companies that list in the US are young and overwhelmingly high-tech oriented. We argue that high-quality innovative firms are willing to incur additional costs associated with listing in the US in order to reveal their value and distinguish themselves from firms that issue stock back home. Costs of listing in the US include first day underpricing and relinquishing corporate control.
KW - Financing innovation
KW - Foreign listing
KW - G1
KW - G15
KW - G32
KW - IPO
UR - http://www.scopus.com/inward/record.url?scp=0000082464&partnerID=8YFLogxK
U2 - 10.1016/S0378-4266(00)00090-X
DO - 10.1016/S0378-4266(00)00090-X
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AN - SCOPUS:0000082464
SN - 0378-4266
VL - 25
SP - 555
EP - 572
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
IS - 3
ER -