Abstract
The present paper exposes the definition and main characteristics of American depository receipts (ADR) and their market. The research discusses the theoretical and practical explanations of the ADR demand by us investors. It also considers, in theoretical terms, the reasons why an international issue would imply changes in the return and variance of the underlying security of ADRS, and comments on the evidence related t to such an issue. The main conclusion of this paper is addresed to the impact on the underlying security following the international listing by middle-sized firms from semi-integrated capital markets.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
