TY - JOUR
T1 - Cross-listing as a Global Depository Receipt
T2 - The influence of emerging markets, regulation, and accounting regime
AU - Chugh, Shrutika
AU - Fargher, Neil
AU - Wright, Sue
PY - 2014/12/1
Y1 - 2014/12/1
N2 - This paper examines factors influencing international firms' decisions to cross-list as Global Depository Receipts (GDRs). We focus on differences in regulatory and accounting requirements between exchanges and the economic clustering that has arisen with increasing globalization. An important economic influence on this decision is the home country, reflecting trade ties. Higher US regulation and governance requirements influence firms from emerging markets to issue GDRs rather than ADRs on a US exchange. Using local GAAP or IFRS also tends to deter firms from listing as an ADR, suggesting that the cost of US GAAP reconciliation is an important consideration in the decision to list as a GDR or an ADR.
AB - This paper examines factors influencing international firms' decisions to cross-list as Global Depository Receipts (GDRs). We focus on differences in regulatory and accounting requirements between exchanges and the economic clustering that has arisen with increasing globalization. An important economic influence on this decision is the home country, reflecting trade ties. Higher US regulation and governance requirements influence firms from emerging markets to issue GDRs rather than ADRs on a US exchange. Using local GAAP or IFRS also tends to deter firms from listing as an ADR, suggesting that the cost of US GAAP reconciliation is an important consideration in the decision to list as a GDR or an ADR.
UR - http://www.scopus.com/inward/record.url?scp=84918520104&partnerID=8YFLogxK
U2 - 10.1016/j.jcae.2014.10.004
DO - 10.1016/j.jcae.2014.10.004
M3 - Article
AN - SCOPUS:84918520104
SN - 1815-5669
VL - 10
SP - 262
EP - 276
JO - Journal of Contemporary Accounting and Economics
JF - Journal of Contemporary Accounting and Economics
IS - 3
ER -