Greg Bell, Satish & Yasmin Gupta College of Business
"Seeking Capital Abroad: Motivations, Process, and Suggestions for Success"
In the Author's Words
The accelerating pace of global capital market integration in the last two decades
has had a profound impact on the strategies pursued by companies, including their
strategies for accessing capital resources outside of their home markets. Today’s
cross-border capital flows take a variety of forms, including overseas IPOs, foreign
direct investment, cross-border acquisitions, cross listings, and foreign portfolio
investment.
In this article, we discuss the corporate motives and other factors that have contributed
to this growth in the international capital-raising activity of companies around the
world. Although the U.S. and U.K. exchanges have been the top host markets and continue
to capture over half of all foreign listings, we highlight several new stock exchanges
that have seen considerable growth in cross-border listings in recent years. But even
with all the growth in international capital raising activity, companies often face
considerable obstacles in their attempts to source capital outside of their home markets.
We discuss the most common of these obstacles and offer a number of suggestions for
companies attempting to overcome the liabilities they face as foreign firms in host
capital markets.
Bell, G. & Rasheed, A. A. (2016), Seeking Capital Abroad: Motivations, Process, and
Suggestions for Success. Journal of Applied Corporate Finance, 28: 104–113.
Faculty Profile: Greg Bell
