Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  2   Issue 9  2013  
Article Abstract
The Impact of Cross-Listing on Firms Capital Structure: Evidence from Brazil
Keywords:  Internationalization of Capital; ADR; Capital Structure
Jeferson Lana , Felipe Flores Martins , Rosilene Marcon and Wlamir Gonçalves Xavier
This article investigates the effects of ADR issuance on indicators of Capital Structure and Cost of Capital. Secondary data was obtained from the Economatica database. Propositions were tested using Unobserved Effects Panel Data Model. For the years 2005 to 2011, 27 ADR-issuing companies were studied out of a sample of 227 companies. The results indicate that ADR-issuing companies have on average 40% greater financial leverage, as well as an approximately 50% lower cost of capital, though the degree of significance is not as statistically favorable as the pre-established trends, which were less than the obtained results
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