Cross-listing as a Global Depository Receipt

The influence of emerging markets, regulation, and accounting regime

Shrutika Chugh, Neil Fargher, Sue Wright*

*Corresponding author for this work

Research output: Contribution to journalArticle


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.

Original languageEnglish
Pages (from-to)262-276
Number of pages15
JournalJournal of Contemporary Accounting and Economics
Issue number3
Publication statusPublished - 1 Dec 2014

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