Sage Journals: Discover world-class research

Abstract

This article examines the three-year monthly aftermarket returns of emerging market firm equities traded on the New York Stock Exchange as American Depository Receipts (ADRs). Excess return results are broken down by the type of issue (IPO versus SEO) and the date of issue (those issued in the 1990s versus the 2000s). The total emerging market sample of 193 ADRs significantly outperformed the S&P 500 index by 8.5 percent for the three-year holding period; however, those issued before 2000 underperformed the index by nearly 18 percent while those listed after January 1, 2000 outperformed the index by nearly 41 percent. SEOs outperformed the market index by 32 percent while IPOs underperformed by 2 percent. Both portfolios (IPOs and SEOs) significantly outperformed the market for issues that were listed in the 2000s.

Keywords

International investing American Depository Receipts emerging markets

Get full access to this article

View all access options for this article.

References

Aggarwal

Leal

Hernandez

(1993). The aftermarket performance of initial public offerings in Latin America. Financial Management, 22(1), 42–53.

Brav

Gompers

(1997). Myth or reality? The long-run underperformance of initial public offerings: Evidence from venture and nonventure capital-backed companies. Journal of Finance, 52(5), 1791–1821.

Callaghan

Kleiman

Sahu

(1999). The market-adjusted investment performance of ADR IPOs and SEOs. Global Finance Journal, 10(2), 123–145.

Foerster

Karolyi

G.A.

(2000). The long-run performance of global equity offerings. Journal of Financial and Quantitative Analysis, 35(4), 499–528.

Huang

(1999). The price behavior of initial public offerings on the Taiwan Stock Exchange. Applied Financial Economics, 9, 201–208.

Levis

(1993). The long-run performance of initial public offerings: The UK experience 1980–1988. Financial Management, 22(1), 28–42.

Ritter

(1991). The long-run performance of initial public offerings. Journal of Finance, 46(1), 3–27.

Schaub

(2003). Investment performance of American Depository Receipts listed on the New York Stock Exchange: Long and short. Journal of Business and Economic Studies, 9(2), 1–19.

Schaub

(2004). Market timing wealth effects of Asia Pacific and European ADRs traded on the NYSE. Applied Financial Economics, 14, 1059–1066.

10.

Schaub

(2009). NASDAQ-listed European and Asia Pacific ADRs: Does market timing affect long-term performance? Applied Financial Economics, 19, 339–345.

11.

Schaub

Highfield

(2004). The short and long term performance of IPOs and SEOs traded as American Depository Receipts: Does timing matter? Journal of Asset Management, 5(4), 263–271.

12.

Schaub

Highfield

(2006). Market timing wealth effects of American Depository Receipts: The cases of emerging and developed market issues. Journal of International Financial Markets, Institutions & Money, 16(3), 270–282.

Long-Run Performance of Emerging Market ADRs: Evidence From Issues Listed on the New York Stock Exchange From 1990 Through 2009

Abstract

Keywords

Get full access to this article

References