What Does it Take to List Abroad? The Role of Global Underwriters

41 Pages Posted: 9 May 2016

See all articles by Cecilia Caglio

Cecilia Caglio

Board of Governors of the Federal Reserve System

Kathleen Weiss Hanley

Lehigh University - College of Business

Jennifer Marietta-Westberg

U.S. Securities and Exchange Commission

Date Written: 2016-03

Abstract

This paper examines which firms benefit the most from going public abroad and how a robust IPO market affects the trend toward greater globalization of capital. We show that the decision to do an IPO outside the home country is affected not only by the home country's market characteristics but also the extent to which it is financially integrated with the world economy. In addition, we provide evidence that the decisions of whether to go public abroad, where to list, and the amount of proceeds raised are determined by the presence of global underwriters. Our results suggest that the rise of global underwriters facilitates the movement of capital across nations and is one of the channels by which world globalization can affect the IPO process.

Keywords: IPO, globalization, proceeds, underwriter

JEL Classification: G1, G3

Suggested Citation

Caglio, Cecilia and Hanley, Kathleen Weiss and Marietta-Westberg, Jennifer, What Does it Take to List Abroad? The Role of Global Underwriters (2016-03). FEDS Working Paper No. 2016-041, Available at SSRN: https://ssrn.com/abstract=2776936 or http://dx.doi.org/10.17016/FEDS.2016.041

Cecilia Caglio (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Kathleen Weiss Hanley

Lehigh University - College of Business ( email )

Bethlehem, PA 18015
United States

Jennifer Marietta-Westberg

U.S. Securities and Exchange Commission ( email )

100 F St NE
Washington, DC 20549
United States

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