Using a unique dataset of foreign and domestic IPOs listings in the US from 1990 to 2012, we study how foreignness affects IPO liquidity. We find that foreign IPOs enjoy higher liquidity than IPOs in their home countries, but do not fully gain the same liquidity benefits as for IPOs of domestic...

The paper finds that costs of implementing stringent securities listing standards may exceed benefits. Depository receipts, a growing source of international equity financing, differ in types by the reporting and disclosure standards issuing firms are required to meet. For lower levels of...

We merge portfolio theories of home bias with corporate finance theories of insider ownership to create the optimal corporate ownership theory of the home bias. The theory has two components: (i) foreign portfolio investors exhibit a large home bias against countries with poor governance because...

In this paper we first proposed a way of measuring home bias based on portfolio holdings of investors compared with global market weights that would hold under the ICAPM. We inferred the costs to cross-border investment and compared them to actual costs and restrictions, thus identifying the...