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

  • Smirnova, Elena
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    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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    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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