U.S. International Equity Investment

• 成果类型: Article
• 署名作者: Ammer, John; Holland, Sara B.; Smith, David C.; Warnock, Francis E.
• 署名单位: University System of Georgia; University of Georgia; University of Virginia; University of Virginia; National Bureau of Economic Research
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/j.1475-679X.2012.00464.x
• 发表日期: 2012
• 页码: 1109-1139
• 关键词: propensity score; HOME BIAS; private benefits; cross-listings; selection bias; Cash holdings; UNITED-STATES; INFORMATION; governance; cost

摘要

Using a comprehensive data set of all U.S. investment in foreign equities, we find that the single most important determinant of the amount of U.S. investment a foreign firm receives is whether the firm cross-lists on a U.S. exchange. Correcting for selection biases, cross-listing leads to a doubling (or more) in U.S. investment, an impact greater than all other factors combined. Much of this increased U.S. investment is purchased in the foreign market, implying that the cross-listing effect reflects something more fundamental about a firm than easier acquisition of its securities. We also demonstrate that cross-listing is an important determinant of U.S. international investment at the country level and describe easy-to-implement methods for including a cross-listing variable as an endogenous control.