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The purpose of this paper is to investigate whether investors prefer stocks with more linguistically fluent tickers (MAK, SOM) to those with less linguistically fluent tickers (WQH, JZU) in an experimental setting.

The author conducts an experiment in which a choice of two hypothetical investments with linguistically fluent and non-fluent tickers is presented to survey participants, who are asked to choose the preferred investment (or indicate that they are indifferent between the investments).

Consistent with investor rationality, survey results indicate that, for both riskless and risky investments, individuals do not exhibit differential preferences for stocks with pronounceable vs unpronounceable tickers. Additionally, individuals are not willing to pay more for former vs latter stocks.

A potential implication is that corporate boards should not attribute high importance to ticker fluency.

The purpose of this paper is to contrast market risk exposure and diversification of single-listed American depository receipts (“ADRs”) with those of dual-listed ADRs from the same geographical region during 2004-2012.

The study uses orthogonal returns in two-factor models to infer exposure to the US and ADRs’ home markets.

The authors found that both ADR types provide no diversification and are significantly exposed to US market risk. The authors also found that portfolios of both single- and dual-listed ADRs behave significantly differently than their home markets.

Only several academic papers discuss single-listed ADRs, and to the best of the knowledge, this study is the first to assess their diversification value.