Publication Type
Journal Article
Version
acceptedVersion
Publication Date
1-2019
Abstract
As at the end of 2012, more than 600 nonstate-owned Chinese firms were listed in overseas stock markets. We find that Chinese firms listed in the US have the lowest cost of capital when compared to those listed in Hong Kong and Singapore, and these results hold when controlling for firm characteristics and the endogeneity of listing locations. Cross-sectional tests indicate that listing in the US is more beneficial to those firms which face higher information asymmetry and agency costs. Overall, our evidence supports the view that the institutional environment has a first-order impact on a firm’s cost of capital.
Keywords
cost of capital, institutional environment, overseas listing
Discipline
Asian Studies | Corporate Finance | Finance and Financial Management
Research Areas
Finance
Publication
Emerging Markets Finance and Trade
Volume
55
Issue
2
Editor
Li Peixin, Frank Weikai Li & Wang Baolian
First Page
365
Last Page
390
ISSN
1540-496X
Identifier
10.1080/1540496X.2018.1436436
Publisher
Taylor & Francis (Routledge): SSH Titles
Citation
Warrington College of Business; LI, Frank Weikai; and Central University of Finance and Economics.
Overseas listing location and cost of capital: Evidence from Chinese firms listed in Hong Kong, Singapore, and the United States. (2019). Emerging Markets Finance and Trade. 55, (2), 365-390.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6662
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1080/1540496X.2018.1436436
Included in
Asian Studies Commons, Corporate Finance Commons, Finance and Financial Management Commons