![Does the method of entry matter? Evidence from Indian ADRs and GDRs [An article from: Pacific-Basin Finance Journal]](https://www.ebooknetworking.net/books/noimage.jpg)
Does the method of entry matter? Evidence from Indian ADRs and GDRs [An article from: Pacific-Basin Finance Journal]
Book Details
Author(s)M. Kalimipalli, L. Ramchand
PublisherElsevier
ISBN / ASINB000P6OMTO
ISBN-13978B000P6OMT6
AvailabilityAvailable for download now
Sales Rank10,121,868
MarketplaceUnited States 🇺🇸
Description
This digital document is a journal article from Pacific-Basin Finance Journal, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
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.
Description:
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.
