Cover IMF Working Papers
Buy Book in Print
Benefits of Compliance with Securities Listing Standards: Evidence From the Depository Receipt Market
Author:
Mr. Abdourahmane Sarr
Search for other papers by Mr. Abdourahmane Sarr in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 079
Language:
English
Publication Date:
01 May 2001
DOI:
https://doi.org/10.5089/9781451850208.001
ISBN:
9781451850208
ISSN:
1018-5941
Pages:
19
Keywords:
WP; firm; country firm; issuing firm; ADR program; investor; Standards implementation; foreign equity investment; regression analysis; publicly traded equity; company securities; company's share; firm specific; Securities; Stocks; Accounting standards; Financial statements; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (586 KB) Download Epub
The paper finds that costs of implementing stringent securities listing standards may exceed benefits. Depository receipts, a growing source of international equity financing, differ in types by the reporting and disclosure standards issuing firms are required to meet. For lower levels of compliance, results show that factors associated with the stage of economic development of the issuing firm's country account for the lower levels of capital raised. Incurring reporting costs to comply with higher standards may thus be inefficient. In contrast, firms choosing to meet higher reporting and disclosure standards do so because the information revealed would have a positive effect on capital raised.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund