Equity cross-listings in the US and the price of debt

• 成果类型: Article
• 署名作者: Ball, Ryan T.; Hail, Luzi; Vasvari, Florin P.
• 署名单位: University of Michigan System; University of Michigan; University of Pennsylvania; University of London; London Business School
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-017-9424-0
• 发表日期: 2018
• 页码: 385-421
• 关键词: capital structure; INVESTOR RECOGNITION; MARKET-SEGMENTATION; UNITED-STATES; AGENCY COSTS; PRIVATE; determinants; INFORMATION; conservatism; choices

摘要

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.