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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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    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. Lucey, Brian M. & Zhang, QiYu, 2010. "Does cultural distance matter in international stock market comovement? Evidence from emerging economies around the world," Emerging Markets Review, Elsevier, vol. 11(1), pages 62-78, March.

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