What do investment banks charge to underwrite American Depositary Receipts?
We investigate how investment banks determine the gross spreads paid by American Depositary Receipts (ADRs) from 1980 to 2004. We begin by comparing the gross spreads of ADR IPOs and ADR SEOs to those of matching US IPOs and US SEOs. We document clustering at the 7% level for our ADR IPO sample (44% for the ADR IPO firms without a previous equity listing), whereas our ADR SEO sample exhibits no discernable clustering at any level. We then find that ADR IPO gross spreads can be explained by firm and offer characteristics (similar to our matched sample of US IPOs), and by whether the ADR IPO firm has a previous equity listing. ADR SEO gross spreads can be explained more by offer characteristics (more similar to our matched sample of US SEOs).
Year of publication: |
2009
|
---|---|
Authors: | Chen, Hsuan-Chi ; Fauver, Larry ; Yang, Pei-Ching |
Published in: |
Journal of Banking & Finance. - Elsevier, ISSN 0378-4266. - Vol. 33.2009, 4, p. 609-618
|
Publisher: |
Elsevier |
Keywords: | American Depositary Receipts (ADRs) Gross spread Underwriters Clustering Firm and offer characteristics |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
What do investment banks charge to underwrite American Depositary Receipts?
Chen, Hsuan-chi, (2009)
-
What do investment banks charge to underwrite American Depositary Receipts?
Chen, Hsuan-Chi, (2009)
-
What do investment banks charge to underwrite American Depositary Receipts?
Chen, Hsuan-Chi, (2009)
- More ...