Going public abroad*

- The increase in global underwriting over time is correlated with the trend in the level of world financial globalization
- Global underwriters facilitate the movement of capital across nations
- Firms list outside their home country to access markets with stronger securities regulation and lower informational frictions
- Going public abroad increases the proceeds to the issuing firm
- Foreign issuers access the US equity market for different reasons than other markets

We examine the decision of a firm to go public abroad and list securities outside their country of origin. Foreign IPO issuers are more likely to choose a global underwriter but only if the home country is less financially integrated. We find that the probability of conducting a foreign IPO is higher if the home country has a less developed stock market, its disclosure regime is weaker and is less financially integrated. Using a matched sample, we show that foreign IPOs raise more capital than their domestic counterparts. Finally, the determinants of the choice of a US listing are unique. Our results suggest that the rise of global underwriters facilitates the movement of capital across nations and contributes to world financial globalization.