Open AccessThe Effect of ADR & GDR Listing on Shareholder’s Wealth: Evidence from India
Author(s) -
Chakrapani Chaturvedula
Publication year - 2018
Publication title -
accounting and finance research
Language(s) - English
Resource type - Journals
eISSN - 1927-5994
pISSN - 1927-5986
DOI - 10.5430/afr.v7n2p174
Subject(s) - listing (finance) , shareholder , sample (material) , business , accounting , cross listing , capital (architecture) , capital market , economics , financial system , finance , corporate governance , geography , chemistry , archaeology , chromatography
During the period January 2000 to December 2007, seventy nine companies raised capital through the ADR/GDR issues 99 times. This paper looks at the impact of ADR/GDR listing on shareholders wealth. Using an event study methodology and for the sample consisting of 13 ADR and 86 GDR listings the present study finds that ADR/GDR listing negatively effects shareholders wealth. The present study indicates that the potential drawbacks outweigh the benefits in international listing in Indian markets in the short run.