scholarly journals Sec Regulation of American Depositary Receipts: Disclosure, Ltd.

1956 ◽  
Vol 65 (6) ◽  
pp. 861
Keyword(s):  
American Depositary Receipts ◽  
Depositary Receipts ◽  
Sec Regulation

Audit Quality of Chinese ADR Engagements

2016 ◽  
Vol 31 (2) ◽  
pp. 25-43 ◽  
Author(s):  
Aloke (Al) Ghosh ◽  
Elisabeth Peltier ◽  
Cunyu Xing
Keyword(s):  
Audit Quality ◽  
Emerging Market ◽  
Financial Statements ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Reverse Mergers ◽  
Chinese Companies ◽  
Big 4 ◽  
Depositary Receipts

SYNOPSIS The controversy over Chinese reverse mergers has led to concerns about the audit quality of all U.S.-listed Chinese companies. Because a sizeable number of foreign firms cross-list their shares as American Depositary Receipts (ADRs) issued by U.S. depositary banks (as opposed to direct listings), we study how auditors have managed their audits of Chinese ADRs. Our motivation for examining Chinese ADRs is based on the findings that cross-listing via the ADR process is beneficial for U.S. shareholders. We find that relative to ADRs from countries other than China, and relative to directly listed Chinese companies, Chinese ADRs are more likely to be associated with a Big 4 auditor and are less likely to restate prior-period financial statements. We also find that Chinese ADRs pay significantly higher fees than other emerging market ADRs and Chinese direct-listings. Collectively, these results suggest high audit quality for Chinese ADRs, which is in sharp contrast to the Chinese direct-listing results. Using Tobin's Q as a measure of market value, we find that the stock market rewards Chinese ADRs, indicating that investors incorporate the benefits of higher audit quality when evaluating Chinese ADRs.

scholarly journals Financial accounts reports

2005 ◽  
Vol 11 (3) ◽  
Author(s):  
Colin Aaronson
Keyword(s):  
New York ◽  
Stock Exchange ◽  
New York Stock Exchange ◽  
American Depositary Receipts ◽  
York Stock Exchange ◽  
Biotechnology Companies ◽  
Market Areas ◽  
Depositary Receipts ◽  
Biotechnology Products ◽  
Made In

Serono International SA is one of the world's largest biotechnology companies with sales in 2004 of almost US$2.5bn made in over 90 countries. The company presently has eight biotechnology products and operates in four market areas: neurology, reproductive health, growth and metabolism, and dermatology. Serono's shares are traded on the Swiss Exchange as well as the virt-x exchange and its American depositary receipts (ADRs) are traded on the New York Stock Exchange. Its results were released on 1st February, 2005. The company has its headquarters in Geneva.

scholarly journals Long Term Dynamics of Indian ADRs Market: The Case of Persistence and Irregular Cycles

2017 ◽  
Vol 6 (2) ◽  
pp. 71
Author(s):  
Ivani Mausumi Bora ◽  
Manoj Kumar
Keyword(s):  
New York ◽  
Random Walk ◽  
Cycle Length ◽  
Nonlinear Behavior ◽  
Market Regulation ◽  
American Depositary Receipts ◽  
Rescaled Range ◽  
Research Questions ◽  
Depositary Receipts

The focus of this study is to understand the previously ignored return generating dynamics of American Depositary Receipts (ADR) markets. The main objective of this study is to investigate the nature of the return generating process of the Indian ADRs market. Specifically, the study addresses following interrelated research questions: Do returns series of Indian ADRs market exhibit random walk behavior or rather depict persistence and nonlinear dynamics? Is there any cyclicity in the returns series of Indian ADRs market? Rescaled Range (R/S) method on daily and weekly return series of Bank of the New York Mellon Indian ADR index (BKIN) from 2002 to 2016 has been applied to address the above questions. Empirical findings revealed that returns series of Indian ADRs market: (a) do not exhibit random walk behavior and rather depict both nonlinear behavior and persistence (long range dependence); (b) possess non-periodic cycles of  0.793, 2.38 and approximately 7 years. The findings can work as crucial inputs to forecasting, risk-management and market regulation processes. The knowledge of the average cycle length and persistence will enhance preparedness to handle the opportunities and risks at all levels in the market.

scholarly journals The Impact of International Listings on Liquidity: Evidence from the Indian Stock Market

2001 ◽  
Vol 26 (4) ◽  
pp. 35-50 ◽  
Author(s):  
Manoj Kumar ◽  
L M Bhole ◽  
Shahrokh M Saudagaran
Keyword(s):  
Stock Exchanges ◽  
American Depositary Receipts ◽  
Equity Offerings ◽  
Foreign Markets ◽  
Policy Makers ◽  
International Capital Markets ◽  
The Us ◽  
Depositary Receipts ◽  
Indian Stock Market ◽  
The Impact

Between May 1992 and June 2001, 72 Indian companies tapped the international capital markets with their equity offerings in form of Depositary Receipts (DRs). Initially, most of these programmes were in the form of Global Depositary Receipts (GDRs) and were traded on London and Luxembourg stock exchanges. Since 1999, many Indian companies have been listing their American Depositary Receipts (ADRs) on the US stock exchanges. Home market responses to issuance of DRs are of interest to the policy makers, investors, market intermediaries, CFOs, and finance scholars. Policy makers m emerging markets are increasingly concerned about the consequences for the domestic equity market when companies list stocks abroad. The present paper assesses the impact of listing of ADRs/GDRs on the liquidity of the firm's underlying domestic shares by using a sample of 30 Indian DR programmes that listed on the foreign markets between 1st January, 1996 and 30th June, 2001. Consistent with the theoretical assertions and results of Domowitz, Glen and Madhavan (1998), the authors record mixed results — while ADR listings in most cases reduce the liquidity of the domestic underlying shares, GDR listings in most cases increase the liquidity of the domestic underlying shares.

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