Abstract
This paper examines how cross-border acquisitions are financed. Acquisitions of U.S. targets by cross-listed bidders are compared against those of U.S. and non-cross-listed bidders. By cross-listing, a foreign firm reduces its cost of paying for acquisitions with equity by enhancing the rights of its minority investors and by decreasing barriers to ownership of its shares by U.S. investors. Cross-listed firms using equity pay on average 10% less than non-cross-listed firms paying with cash. However, they use equity less often than U.S. firms. Cross-listed firms from countries with poorer investor protection pay a higher premium when using equity indicating that U.S. shareholders require compensation for opting into corporate governance environments with poorer investor protection.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
