Peer-Reviewed Journal Details
Mandatory Fields
O'Connor T.
2011
April
Journal of Emerging Market Finance
Financial development, internationalisation and firm value
Published
()
Optional Fields
financial deepening Financial liberalisation internationalisation Tobin's q
10
1
21
71
In this article I show that both aspects of financial development, namely, liberalisation and deepening, and financial internationalisation proxied using cross-listings in the US creates value for emerging market firms. Financial deepening, or more precisely, stock market deepening enhances value. In contrast, bank sector deepening only serves to reduce value because it is associated with large-scale corporate expansion and a fall in market capitalisation. Like others, I document a cross-listing premium for Level 2/3 cross-listings in the US. The cross-listing premium is typically less than the gains from financial liberalisation, but they are similar in magnitude over the period examined.
0972-6527
10.1177/097265271101000102
Grant Details