American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds
DOWNLOAD
Download American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds
DOWNLOAD
Author : Reena Aggarwal
language : en
Publisher:
Release Date : 2005
American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds written by Reena Aggarwal and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with American depository receipts categories.
"For a foreign "issuer," the benefits of cross-listing in the United States are extensively documented in the literature. However it is not clear what motivates "investors" to hold American Depositary Receipts (ADRs) rather than the underlying stock of these issuers. The authors address the investors' choice to purchase local shares versus investing in ADRs. Specifically, they analyze the investment allocation decision of mutual fund managers to invest in emerging market firms that are listed in their domestic markets and have also issued ADRs in the United States. Although legal provisions (governance/investor protection) are typically assumed to affect ADRs and their underlying domestic shares equally, investors holding ADRs may have a higher level of legal protection as these securities are issued and traded in the United States. The authors' results are consistent with this "better legal protection" hypothesis as they find that funds prefer to hold ADRs rather than the underlying shares if the issuer is from a country with weak investor protection laws. Also, theoretical models of multiple trading exchanges predict that trading should tend to aggregate in the market with the lowest transaction costs. Similarly, the relative liquidity of an ADR compared to that of its underlying stock should also affect the funds' relative holding of the ADR versus the underlying stock. Consistent with this "ease of transaction" hypothesis the authors find that if an issuer is based in a country with a relatively small stock market, low level of trading volume, and high transaction costs, funds tend to hold a larger proportion of their investments in the ADR. Furthermore, funds hold a larger fraction of their investment in the ADR if the ADR trading volume is high relative to its domestic security trading volume. The results also suggest that ADR listings of local firms might not negatively affect local markets if the investment climate is good. "--World Bank web site.
American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds
DOWNLOAD
Author : Reena Aggarwal
language : en
Publisher:
Release Date : 2012
American Depositary Receipts Adr Holdings Of U S Based Emerging Market Funds written by Reena Aggarwal and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012 with categories.
For a foreign "issuer," the benefits of cross-listing in the United States are extensively documented in the literature. However it is not clear what motivates "investors" to hold American Depositary Receipts (ADRs) rather than the underlying stock of these issuers. The authors address the investors' choice to purchase local shares versus investing in ADRs. Specifically, they analyze the investment allocation decision of mutual fund managers to invest in emerging market firms that are listed in their domestic markets and have also issued ADRs in the United States. Although legal provisions (governance/investor protection) are typically assumed to affect ADRs and their underlying domestic shares equally, investors holding ADRs may have a higher level of legal protection as these securities are issued and traded in the United States. The authors' results are consistent with this "better legal protection" hypothesis as they find that funds prefer to hold ADRs rather than the underlying shares if the issuer is from a country with weak investor protection laws. Also, theoretical models of multiple trading exchanges predict that trading should tend to aggregate in the market with the lowest transaction costs. Similarly, the relative liquidity of an ADR compared to that of its underlying stock should also affect the funds' relative holding of the ADR versus the underlying stock. Consistent with this "ease of transaction" hypothesis the authors find that if an issuer is based in a country with a relatively small stock market, low level of trading volume, and high transaction costs, funds tend to hold a larger proportion of their investments in the ADR. Furthermore, funds hold a larger fraction of their investment in the ADR if the ADR trading volume is high relative to its domestic security trading volume. The results also suggest that ADR listings of local firms might not negatively affect local markets if the investment climate is good.
American Depositary Receipt Adr Holdings Of U S Based Emerging Market Funds
DOWNLOAD
Author : Reena Aggarwal
language : en
Publisher:
Release Date : 2005
American Depositary Receipt Adr Holdings Of U S Based Emerging Market Funds written by Reena Aggarwal and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with categories.
Adr Holdings Of U S Based Emerging Market Funds
DOWNLOAD
Author : Reena Aggarwal
language : en
Publisher:
Release Date : 2012
Adr Holdings Of U S Based Emerging Market Funds written by Reena Aggarwal and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012 with categories.
The benefits of cross-listing for a foreign quot;issuerquot; are extensively documented in the literature, however it is not clear what motivates quot;investorsquot; to hold American Depositary Receipts (ADRs) rather than the underlying stock of these issuers. We analyze the investment allocation decision of mutual fund managers to invest in emerging market firms that are listed in their domestic markets and have also issued ADRs in the U.S. Although legal provisions are typically assumed to affect ADRs and their underlying domestic shares equally, investors holding ADRs may have a higher level of legal protection as these securities are issued and traded in the U.S. We find that ADRs are the preferred mode of holdings if the local market of the issuer has weak investor protection, low liquidity and high transaction costs, and if the firm is small and has limited analyst following. We also find that not all ADR listings are associated with low liquidity in the underlying security. In fact, firms with strong liquidity for their underlying security are likely to be held via their underlying security rather than the ADRs. This suggests that ADR listings of local firms might not negatively impact local markets if the investment climate is good.
Portfolio Preferences Of Foreign Institutional Investors
DOWNLOAD
Author : Reena Aggarwal
language : en
Publisher: World Bank Publications
Release Date : 2003
Portfolio Preferences Of Foreign Institutional Investors written by Reena Aggarwal and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003 with Foreign exchange categories.
Policy Research Working Papers
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 1991
Policy Research Working Papers written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1991 with Developing countries categories.
International Capital Flows
DOWNLOAD
Author : Martin Feldstein
language : en
Publisher: University of Chicago Press
Release Date : 2007-12-01
International Capital Flows written by Martin Feldstein and has been published by University of Chicago Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007-12-01 with Business & Economics categories.
Recent changes in technology, along with the opening up of many regions previously closed to investment, have led to explosive growth in the international movement of capital. Flows from foreign direct investment and debt and equity financing can bring countries substantial gains by augmenting local savings and by improving technology and incentives. Investing companies acquire market access, lower cost inputs, and opportunities for profitable introductions of production methods in the countries where they invest. But, as was underscored recently by the economic and financial crises in several Asian countries, capital flows can also bring risks. Although there is no simple explanation of the currency crisis in Asia, it is clear that fixed exchange rates and chronic deficits increased the likelihood of a breakdown. Similarly, during the 1970s, the United States and other industrial countries loaned OPEC surpluses to borrowers in Latin America. But when the U.S. Federal Reserve raised interest rates to control soaring inflation, the result was a widespread debt moratorium in Latin America as many countries throughout the region struggled to pay the high interest on their foreign loans. International Capital Flows contains recent work by eminent scholars and practitioners on the experience of capital flows to Latin America, Asia, and eastern Europe. These papers discuss the role of banks, equity markets, and foreign direct investment in international capital flows, and the risks that investors and others face with these transactions. By focusing on capital flows' productivity and determinants, and the policy issues they raise, this collection is a valuable resource for economists, policymakers, and financial market participants.
Investing In Emerging And Frontier Markets
DOWNLOAD
Author : Kamar Jaffer
language : en
Publisher:
Release Date : 2015-01
Investing In Emerging And Frontier Markets written by Kamar Jaffer and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-01 with categories.
Portfolio Investment Flows To Emerging Markets
DOWNLOAD
Author : Sudarshan Gooptu
language : en
Publisher: World Bank Publications
Release Date : 1993
Portfolio Investment Flows To Emerging Markets written by Sudarshan Gooptu and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 1993 with categories.
The Effects Of Market Segmentation And Investor Recognition On Asset Prices
DOWNLOAD
Author : Stephen R. Foerster
language : en
Publisher:
Release Date : 2001
The Effects Of Market Segmentation And Investor Recognition On Asset Prices written by Stephen R. Foerster and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2001 with categories.
Non-U.S. firms cross-listing shares on U.S. exchanges as American Depositary Receipts earn cumulative abnormal returns of 19 percent during the year before listing, an additional 1.20 percent during the listing week, but incur a loss of 14 percent during the year following listing. We show how these unusual share price changes are robust to changing market risk exposures and are related to an expansion of the shareholder base and to the amount of capital raised at the time of listing. Our tests provide support for the market segmentation hypothesis and Merton?s (1987) investor recognition hypothesis.