Does the method of entry matter? Evidence from Indian ADRs and GDRs |
| |
| Institution: | 1. Laboratory Research for Economy, Management and Quantitative Finance, Institute of High Commercial Studies, University of Sousse, Tunisia;2. Institute of High Commercial Studies, University of Sousse, Tunisia;1. School of Insurance and Economics, University of International Business and Economics, No. 10, Huixindongjie Rd., Chaoyang District, Beijing 100029, PR China;2. Department of Finance, National Central University, No. 300, Zhongda Rd., Zhongli District, Taoyuan City 32001, Taiwan;3. Department of Finance, National Taiwan University, No. 1, Sec. 4, Roosevelt Rd., Taipei 10617, Taiwan;4. Risk and Insurance Research Center, National Chengchi University, NO.64, Sec.2, ZhiNan Rd., Wenshan District, Taipei 11605, Taiwan;5. Center for Research in Econometric Theory and Applications, National Taiwan University, No. 1, Sec. 4, Roosevelt Rd., Taipei 10617, Taiwan;6. School of Insurance and Economics, University of International Business and Economics, No. 10, Huixindongjie Rd., Chaoyang District, Beijing 100029, PR China |
| |
| Abstract: | This paper documents changes in volatility, returns, liquidity and valuation on the local market following different ADR issues, viz., Level I, II, III, Rule 144A and Regulation S offerings, by the Indian firms in the global market. The sample consists of 84 ADR and GDR issues made by the Indian firms during 1990–2001. The Rule 144A and Reg S issues experience a significant decline in volatility on the home (Indian) market and these effects are mainly observed during the first sub-period, i.e. 1990–1997. In addition, Level III ADRS, which are exchange listed and capital raising issues, experience a significant increase in liquidity on the home market and these occur in the second sub-period, i.e. 1998–2001. Though ADRs in general experience an increase in valuation (as measured by the q ratios) after the U.S. issue, there is no strong evidence to suggest that the magnitude of increase depends on the method of entry. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
