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

Asher Blass*, Yishay Yafeh

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

90 Scopus citations

Abstract

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.

Original languageAmerican English
Pages (from-to)555-572
Number of pages18
JournalJournal of Banking and Finance
Volume25
Issue number3
DOIs
StatePublished - Mar 2001

Keywords

  • Financing innovation
  • Foreign listing
  • G1
  • G15
  • G32
  • IPO

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