IDEAS home Printed from https://ideas.repec.org/a/pal/assmgt/v5y2004i4d10.1057_palgrave.jam.2240144.html
   My bibliography  Save this article

Short-term and long-term performance of IPOs and SEOs traded as American depository receipts: Does timing matter?

Author

Listed:
  • Mark Schaub

    (Northwestern State University, College of Business)

  • Michael J. Highfield

    (assistant professor of finance at Louisiana Tech University)

Abstract

This paper examines the short-term and long-term returns of a sample of foreign equities traded on the New York Stock Exchange as American Depository Receipts (ADRs) issued between 1st January, 1987, and 30th September, 2000. Distinctions are made between those ADRs issued as initial public offerings (IPOs) and as seasoned equity offerings (SEOs) and those before and after 1st June, 1998. The results suggest that, on average, ADR IPOs and SEOs issued prior to 1st June, 1998, underperform the S&P500 in both short-term and long-term holding periods. Conversely, ADR IPOs and SEOs issued after 1st June, 1998, either perform equally or outperform the S&P500 in both short-term and long-term holding periods. Overall, the results suggest that non-negative and even positive significant cumulative wealth effects associated with stock market timing may exist for ADR IPOs and SEOs trading during holding periods in bear markets.

Suggested Citation

  • Mark Schaub & Michael J. Highfield, 2004. "Short-term and long-term performance of IPOs and SEOs traded as American depository receipts: Does timing matter?," Journal of Asset Management, Palgrave Macmillan, vol. 5(4), pages 263-271, December.
    • Handle: RePEc:pal:assmgt:v:5:y:2004:i:4:d:10.1057_palgrave.jam.2240144
    DOI: 10.1057/palgrave.jam.2240144
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jam.2240144
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/palgrave.jam.2240144?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Schaub, 2011. "Does market timing or issue type affect the long-run performance of UK American Depository Receipts listed on the New York Stock Exchange?," Journal of Asset Management, Palgrave Macmillan, vol. 12(3), pages 157-162, August.
    2. Li, Shi & Li, Tianze & Mittoo, Usha & Song, Xiaoping & Zheng, Steven Xiaofan, 2019. "ADR valuation and listing of foreign firms in U.S. Equity markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 58(C), pages 284-298.
    3. Beckmann, Klaus S. & Ngo, Thanh & Wang, Daphne, 2015. "The informational content of ADR mispricing," Journal of Multinational Financial Management, Elsevier, vol. 32, pages 1-14.
    4. Mark Schaub, 2012. "International equities listed on the New York stock exchange: does type of issue or date of issue matter?," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 26(4), pages 429-447, December.
    5. Mark Schaub, 2013. "Long-Run Performance of Emerging Market ADRs: Evidence From Issues Listed on the New York Stock Exchange From 1990 Through 2009," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 5(1), pages 41-54, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:assmgt:v:5:y:2004:i:4:d:10.1057_palgrave.jam.2240144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.