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The geography and determinants of ADR holdings

Author

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  • Samet, Anis
  • Abdallah, Wissam
  • Abdallah, Abed AL-Nasser

Abstract

We analyze institutional ownership in listed ADRs over the last two decades and investigate new determinants of institutional ownership in these ADRs. Using a unique dataset, we find that institutional investors invest more in ADRs without underlying stocks listed in the home market (i.e., single ADRs). We also document that institutional investors invest less in ADRs whose underlying shares attract more foreign investors, and invest more in ADRs with more concentrated institutional ownership structure. Our results are statistically and economically meaningful and are robust to a battery of sensitivity checks.

Suggested Citation

  • Samet, Anis & Abdallah, Wissam & Abdallah, Abed AL-Nasser, 2023. "The geography and determinants of ADR holdings," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 228-243.
    • Handle: RePEc:eee:quaeco:v:88:y:2023:i:c:p:228-243
    DOI: 10.1016/j.qref.2023.01.009
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    More about this item

    Keywords

    Cross-listing; Ownership structure; Corporate governance; Institutional holding;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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