The Impact of Depositary Receipts on Stock Market Development: Evidence from Organization of Islamic Cooperation Stock Markets

Norhazlina Ibrahim, Obiyathulla Bacha, Mansor H. Ibrahim and Hishamuddin Abdul Wahab
Additional contact information
Norhazlina Ibrahim: Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia,
Mansor H. Ibrahim: INCEIF, Lorong Universiti A, 59100 Kuala Lumpur, Malaysia,
Hishamuddin Abdul Wahab: Faculty of Science and Technology, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia.

International Journal of Economics and Financial Issues, 2020, vol. 10, issue 3, 130-138

Abstract: The issue of liquidity and the under development of the Organization of Islamic Cooperation (OIC) stock markets have been a hindrance factor for companies in those countries to seek fund and capital. Due to this reason, many companies choose Depositary Receipts (DRs) to raise capital internationally. Thus, this study aims at examining the financial implications of cross listing via the existing Depositary Receipts (DRs) on stock market development. This study employs a dynamic panel model covers sample of 146 firms from 17 OIC countries that are cross-listed as American Depositary Receipts (ADRs) or Global DRs from 1993 to 2016. The findings reveal that growth and expansion of international cross listings via DRs have a positive impact on domestic stock market. This study provides insights to OIC stock markets that consider accommodating Islamic Depositary Receipts (IDRs) in the future.

Keywords: Depositary Receipts (DRs); stock market development; OIC countries; Islamic Finance (search for similar items in EconPapers)
JEL-codes: G1 G10 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/9572/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/9572/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2020-03-17

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().