Chen, Hsuan-Chi; Hao, (Grace) Qing - In: Journal of Banking & Finance 35 (2011) 8, pp. 1907-1917
Using American Depositary Receipt (ADR) IPOs from 34 countries during 1980-2004, we find that, on average, the enforcement of insider trading laws reduces the underwriter gross spread by 49-61 basis points, which is about 10-12% of the average gross spread for ADR IPOs. This relation is present...