International Finance Discussion Papers (IFDP)
January 2003
Firm-Level Access To International Capital Markets: Evidence From Chilean Equities
Sara B. Holland and Francis E. Warnock
Abstract:
High growth, liquid Chilean firms have greater relative weights in U.S. equity portfolios, but the most important determinant of a firm's portfolio weight is whether it is listed on a U.S. exchange. Cross-listing does not, however, appear to have permanent benefits: Weights in U.S. portfolios of firms that cross-listed in the mid-1990s increased at the expense of firms that cross-listed earlier. Put another way, firms appear to be able to access international capital at the time of the cross-listing, but this access may well be short-lived.
Keywords: Financial liberalization, portfolio choice, emerging market, home bias
PDF: Full Paper
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