跨国金融原理(第三版)教师手册 M13_MOFF9242_03_IM_C13 .pdfVIP

Chapter13

SourcingEquityCapitalGlobally

Questions

1.DesigningaStrategytoSourceEquityGlobally.Exhibit13.1illustratesalternativepathsto

andavailabilityofcapital.

Novotookthefollowingsteps:

a.

b.

StockExchange.

c.

2.DepositaryReceipts—Definitions.Definethefollowingterms:

a.ADRs.Depositaryreceipts

Americandepositaryreceipts(ADRs)arecertificatestradedintheUnitedStatesand

thesamemannerasanyshareofstock,witheachADRrepresentingsomemultipleofthe

underlyingforeignshare.

b.GRSs

anddepositariesrequiredbyshareformslikeADRs.

c.Sponsoreddepositaryreceipts.SponsoredADRsarecreatedattherequestofaforeignfirm

commission(SEC)andaU.S.bankforregistrationandissuanceofADRs.

d.Unsponsoreddepositaryreceipts

ADRs.SuchanADRwouldbeunsponsored,buttheSECstillrequiresthatallnewADR

programsmusthaveapprovalofthefirmitselfevenifitisnotasponsoredADR.

56Moffett/Stonehill/Eiteman•FundamentalsofMultinationalFinance,ThirdEdition

3.ADRs.DistinguishbetweenthethreelevelsofcommitmentforADRstradedintheUnitedStates.

LevelI(“overthecounter”

listexistingsharesontheNYSE,AMEX,orNASDAQmarkets.Theymustmeetthefullregistration

Thisisthemostexpensivealternativebutisthemostlikelytoimprovethestock’sliquidityand

escapefromhomemarketsegmentation.

4.ForeignEquityListingandIssuance.Givefivereasonswhyafirmmightcross-listandsellits

sharesonaveryliquidstockexchange.

a.

issuesinforeignmarkets.

b.Increaseitssharepricebyovercomingmispricinginasegmentedandilliquidhomecapital

market.

c.Increasethefirm’svisibilityandpoliticalacceptancetoitscustomers,suppliers,creditors,and

hostgovernments.