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Depositary receipts and firm value: Evidence from Central Europe and Russia

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  • Smirnova, Elena
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    Abstract

    This research indicates an average valuation premium of 27.3% in a sample of 43 cross-listed companies domiciled in Hungary, the Czech Republic, Poland and Russia relative to 123 companies from the region that choose not to cross list. After controlling for a host of country-specific micro- and macro-economic variables, the results reveal that firms that have less access to sound money in domestic markets and firms from countries with large government sectors are more likely to issue a depositary receipt. These companies also realize a higher market value, measured by Tobin's Q.

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    File URL: http://www.sciencedirect.com/science/article/B6W69-4TMSNVJ-1/2/9b5d0590255e1770e41d5e3b42eb5d22
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    Bibliographic Info

    Article provided by Elsevier in its journal Emerging Markets Review.

    Volume (Year): 9 (2008)
    Issue (Month): 4 (December)
    Pages: 266-279

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    Handle: RePEc:eee:ememar:v:9:y:2008:i:4:p:266-279

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    Web page: http://www.elsevier.com/locate/inca/620356

    Related research

    Keywords: International cross-listing ADRs Equity markets of Central Europe and Russia;

    References

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    Cited by:
    1. Brian M. Lucey, QiYu Zhang* School of Business, Trinity College Dublin, Ireland, 2009. "Does cultural distance matter in international stock market comovement? Evidence from emerging economies around the world," The Institute for International Integration Studies Discussion Paper Series iiisdp304, IIIS.

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