A Study of Determinants and Impacts of The Indian ADRs and GDRs

In recent years, there is a trend towards the internationalization of financial markets. This process has gained impetus during the last two decades. Companies that previously had to raise capital only domestically can now tap financial markets in the foreign countries. In order to do so, companies may list their stocks on foreign stock exchanges while investors may trade overseas. For foreign listing of their stocks, firms can choose between the direct listing of their equity stocks and listing of their Depositary Receipt (DR) on the foreign exchanges. Between May 1992 and June 2001, seventy-two Indian firms listed their 85 Depositary Receipt (DR) programs on the foreign capital markets. More Info

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