Depositary receipts from the East Asian region

Abstract

Notes rapid growth in the number of depositary receipt (DR) listings on US exchanges and presents a study of those from East Asia. Explains how they allow US investors to trade in the equity or debt of non‐US companies through US institutions and reviews the relevant literature. Classifies 605 East Asian DRs at March 2000 by country, year of issue, sponsorship status, exchange, depositary bank and industry; and discusses reasons for the differences found. Tests the relationship between exchange rates and the issuance of DRs and presents the results, which show that firms may be more likely to issue DRs when their home currency is strong relative to the US dollar, i.e. when they can obtain the best listing price in US markets.

Citation

Samant, A., Tourani Rad, A. and Yi Wang, C. (2002), "Depositary receipts from the East Asian region", Managerial Finance, Vol. 28 No. 2, pp. 1-17. https://doi.org/10.1108/03074350210767663