Chen, Hsuan-Chi; Fauver, Larry; Yang, Pei-Ching - In: Journal of Banking & Finance 33 (2009) 4, pp. 609-618
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...
