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    Are There Permanent Valuation Gains from Becoming Investable?

    O'Connor, Thomas G. (2010) Are There Permanent Valuation Gains from Becoming Investable? Banking and Finance Letters, 2 (4). pp. 419-429. ISSN 1308-6588

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    In this paper, I examine whether the “investable premium” documented by Mitton and O’Connor (2010) is permanent. In a series of firm-fixed effects regressions, I show that the “investability premium” disappears after five years of becoming investable, but subsequently reappears, and appears permanent. At the very least, the “investable premium” tends to last at least as long as some other “internationalization premia” documented in the literature, and remains even after 12 years of becoming investable. The premium persists, even after controlling for observable and unobservable firm-level characteristics, industry growth, and indirect investability.

    Item Type: Article
    Keywords: Investability; Tobin’s q; Internationalization;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 8498
    Depositing User: Thomas G. O'Connor
    Date Deposited: 25 Jul 2017 11:19
    Journal or Publication Title: Banking and Finance Letters
    Publisher: International Economic Society
    Refereed: Yes
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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