The geography and determinants of ADR holdings

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 AD...

Full description

Saved in:
Bibliographic Details
Published in:The Quarterly review of economics and finance 2023-04, Vol.88, p.228-243
Main Authors: Samet, Anis, Abdallah, Wissam, Abdallah, Abed AL-Nasser
Format: Article
Language:English
Subjects:
Corporate governance
Cross-listing
Institutional holding
Ownership structure
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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. •Institutional investors invest more in single ADRs.•Institutional investors invest less in ADRs whose underlying stocks attract more foreign investors.•Institutional investors invest more in ADRs with more concentrated institutional ownership structure.
ISSN:1062-9769
1878-4259
DOI:10.1016/j.qref.2023.01.009