Providing fund from international stock markets and an application example

In this thesis ways of providing fund form international stock markets had studied with its reasons and outcomes for the firms. By providing fund from international stock markets its meant issuing shares in the foreign stock markets not selling shares to foreign investors which are issuing in the home markets. As an application example, the initial public offering of Turkcell simultaneously both in ISE and NYSE in the year 2000 had studied. With financial globalization international capital movements has gain speed and number of firms which provide fund from international stock markets by cross-listing their existing shares or issuing new shares to these markets has increased. Not only developed country firms but also firms from developing countries now have the chance of providing fund from these markets. Firms willing to provide fund usually from foreign markets which are bigger, more liquid and has more strict rules than their home markets. Generally depositary receipts are used for providing fund from international stock markets and ADRs are the mostly used one among depositary receipts. Higher volume funds at a lower cost and becoming more global are the reasons why firms want to provide fund from international stock markets. Providing fund from international stock markets has positive effects on cost of capital, share price, firm governance, and growth rates. As a result of these effects firms? value also increases. The effects are higher for firms from developing countries and for firms which chose organized markets for fund providing. Turkish firms also use international stock markets for providing fund. Turkcell is the first and the only Turkish company which provide capital from NYSE by using Level 3 ADR program. Positive effects of providing fund from international stock markets also acceptable for Turkcell. But the only difference is there is no difference in the cost of capital when its compared with ISE.