search query: @author Errunza, V. R. / total: 9
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| Author: | Errunza, V. R. Miller, D. P. |
| Title: | Market Segmentation and the Cost of Capital in International Equity Markets |
| Journal: | Journal of Financial and Quantitative Analysis
2000 : DEC, VOL. 35:4, p. 577-600 |
| Index terms: | MARKET SEGMENTATION CAPITAL COSTS STOCK MARKETS |
| Language: | eng |
| Abstract: | While theoretical models predict a decrease in the cost of capital from depositary receipt offerings, the economic benefits of this liberalization have been difficult to quantify. Using a sample of 126 firms from 32 countries, the authors document a significant decline of 42% in the cost of capital. In addition, the authors show the decline is driven by the ability of U.S. investors to span the foreign security prior to cross- listing. The authors' findings support the hypothesis that financial market liberalizations have significant economic benefits. |
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