Cross-listing as a Global Depository Receipt: The influence of emerging markets, regulation, and accounting regime

Shrutika Chugh, Neil Fargher and Sue Wright

Journal of Contemporary Accounting and Economics, 2014, vol. 10, issue 3, 262-276

Abstract: 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.

Keywords: Global Depository Receipts; Regulation; Cross-listing; Emerging markets (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:10:y:2014:i:3:p:262-276

DOI: 10.1016/j.jcae.2014.10.004

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