Journal article

Competition among exchanges through simplified disclosure requirements: evidence from the American and Global Depositary Receipts

Oksana Kim, Matt Pinnuck

Accounting and Business Research | ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD | Published : 2014

Abstract

In this study, we address the ongoing debate as to whether the competition among the world's major exchanges through simplified disclosure requirements is justified. Companies from across the globe have a choice of cross-listing shares as either American or Global Depositary Receipts (ADRs and GDRs, respectively). The former are primarily listed on the US exchanges - NYSE, NASDAQ and AMEX - whereas the latter are issued into non-US markets such as the London Stock Exchange (LSE). The GDRs listed on the LSE are subject to simplified disclosure requirements compared to their exchange-listed ADR peers that have to meet more stringent compliance standards. Proponents of the 'light touch' approac..

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University of Melbourne Researchers