Innovation and market liquidity: the case of ADRs

2020 ◽  
Vol 32 (4) ◽  
pp. 633-641
Author(s):  
Manuel Lobato ◽  
Javier Rodriguez ◽  
Herminio Romero
Keyword(s):  
Adverse Selection ◽  
Trading Volume ◽  
Design Methodology ◽  
Market Liquidity ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Patent Citations ◽  
Content Type ◽  
The Usa ◽  
Depositary Receipts

Purpose Patents and patent citations provide a solid signal to investors about a firm’s innovation agenda. This signal can be even more useful for investors demanding securities from foreign firms, given the asymmetric information and adverse selection risk they face. This study aims to examine the patenting activities in the USA performed by non-US companies that trade as American Depositary Receipts (ADRs) in US stock markets. Design/methodology/approach The authors examine the effect on the trading volume of a sample of ADRs following the publication of their first patent in the USA. Findings The results show that the publication of a first patent has no effect on the liquidity of these ADRs when compared with same-country ADRs without patents. Originality/value This study enriches the literature on the relation between innovation, information and the stock market.

scholarly journals Changes In Stock Returns And Trading Volume Of American Depositary Receipts Around Their U.S. Stock Exchange Listing Switches

2012 ◽  
Vol 28 (6) ◽  
pp. 1445
Author(s):  
Kam C. Chan ◽  
Annie Wong
Keyword(s):  
New York ◽  
Stock Returns ◽  
Trading Volume ◽  
Stock Exchange ◽  
Market Performance ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Font Size ◽  
Depositary Receipts ◽  
Year 2000

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; mso-hyphenate: none;" class="MsoNormal"><span style="font-size: 10pt; mso-bidi-font-weight: bold;"><span style="font-family: Times New Roman;">This study examines the change in stock returns and trading volume of American Depositary Receipts when foreign firms switched their listings from a major U.S. stock exchange to a more prestigious U.S. stock exchange; namely from the NASDAQ or American Stock Exchange to the New York Stock Exchange or from the American Stock Exchange to the NASDAQ since year 2000. We find that the stock returns of these American Depositary Receipts changed from better-than-market performance before the listing changes to just market performance after the listing changes. This evidence is consistent with a timing behavior of the management. We also find significant increase in their trading volume after the listing changes. This leads us to conclude that switching to a more prestigious stock exchange was able to create more investor interest.<strong></strong></span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

Chinese single-listed ADRs: returns and volatility

2015 ◽  
Vol 11 (4) ◽  
pp. 480-502 ◽  
Author(s):  
Javier Rodríguez ◽  
Wilfredo Toledo
Keyword(s):  
Design Methodology ◽  
American Depositary Receipts ◽  
Home Market ◽  
Content Type ◽  
Factors Affecting ◽  
Return Behavior ◽  
Step Procedure ◽  
The Us ◽  
The Mean ◽  
Depositary Receipts

Purpose – Single-listed American depositary receipts (ADRs) are traded in US markets, while their underlying share is not listed in the firm’s home market. The purpose of this paper is to empirically examine the factors affecting the returns and volatility of a sample of Chinese single-listed ADRs, in comparison with traditional Chinese ADRs. Design/methodology/approach – The methods used in this paper are similar to those used in the examination of traditional or dual-listed Chinese ADRs. However, motivated by the very nature of single-listed ADRs, the authors estimate a base model which includes factors from the two presumably most important markets for single-listed Chinese ADRs (i.e. the Chinese and US markets). In all of the estimations, the authors follow a two-step procedure. First, the authors estimate a GARCH(1,1) model with the mean equation modeled as an AR(p) process and from those models estimate GARCH (conditional) variances. Findings – In line with the evidence on traditional Chinese ADRs, the authors find that both the Chinese and the US markets are important predictors of single-listed ADR returns. The results are robust to variations in the model specifications. Originality/value – Single-listed ADR return behavior is still an under-researched topic. In this paper, the authors contribute to the literature on Chinese single-listed ADRs by empirically examining the determinants of their mean return and volatility.

Corruption and earnings management in developed and emerging countries

2018 ◽  
Vol 18 (1) ◽  
pp. 35-51 ◽  
Author(s):  
Isabel Costa Lourenço ◽  
Alex Rathke ◽  
Verônica Santana ◽  
Manuel Castelo Branco
Keyword(s):  
Earnings Management ◽  
Positive Association ◽  
Developed Countries ◽  
Emerging Countries ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Firm Level ◽  
Content Type ◽  
Developed Economies ◽  
Depositary Receipts

Purpose The purpose of this study is to examine whether firms from countries presenting higher levels of corruption are more likely to have higher levels of earnings management than their counterparts from countries with lower levels of corruption. It also explicitly examines how this relationship compares between emerging and developed economies. Design/methodology/approach Using multiple regression analysis, this study tests the hypothesis of positive association between the countries’ level of corruption and the level of earnings management using a sample of foreign firms with American Depositary Receipts in the US market. Findings Findings indicate that higher corruption perception is related to higher incentives for firms to manipulate earnings in the case of emerging countries. Such results are not identified in developed countries where the level of minority investors’ protection is higher. Findings also indicate that in developed countries earnings management is negatively related to investor protection, which is not the case for emerging countries. Originality value As far as the authors are aware, this study is the first to examine the effects of corruption on earnings management on the basis of accounting firm-level data.

Audit Quality of Chinese ADR Engagements

2016 ◽  
Vol 31 (2) ◽  
pp. 25-43 ◽  
Author(s):  
Aloke (Al) Ghosh ◽  
Elisabeth Peltier ◽  
Cunyu Xing
Keyword(s):  
Audit Quality ◽  
Emerging Market ◽  
Financial Statements ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Reverse Mergers ◽  
Chinese Companies ◽  
Big 4 ◽  
Depositary Receipts

SYNOPSIS The controversy over Chinese reverse mergers has led to concerns about the audit quality of all U.S.-listed Chinese companies. Because a sizeable number of foreign firms cross-list their shares as American Depositary Receipts (ADRs) issued by U.S. depositary banks (as opposed to direct listings), we study how auditors have managed their audits of Chinese ADRs. Our motivation for examining Chinese ADRs is based on the findings that cross-listing via the ADR process is beneficial for U.S. shareholders. We find that relative to ADRs from countries other than China, and relative to directly listed Chinese companies, Chinese ADRs are more likely to be associated with a Big 4 auditor and are less likely to restate prior-period financial statements. We also find that Chinese ADRs pay significantly higher fees than other emerging market ADRs and Chinese direct-listings. Collectively, these results suggest high audit quality for Chinese ADRs, which is in sharp contrast to the Chinese direct-listing results. Using Tobin's Q as a measure of market value, we find that the stock market rewards Chinese ADRs, indicating that investors incorporate the benefits of higher audit quality when evaluating Chinese ADRs.

Do information technology (IT) capabilities affect hotel competitiveness?

2020 ◽  
Vol 11 (3) ◽  
pp. 447-460
Author(s):  
Nan Hua
Keyword(s):  
Design Methodology ◽  
Financial Data ◽  
Content Type ◽  
It Systems ◽  
Study Results ◽  
It Capabilities ◽  
The Usa ◽  
Lagged Effects ◽  
The Individual ◽  
Direct Measures

Purpose This paper aims to examine the impacts of IT capabilities on hotel competitiveness. Design/methodology/approach This study adapts and extends Hua et al. (2015) and O’Neill et al. (2008) by incorporating the specific measures of IT expenditures as proxies for the relevant IT capabilities to explore the impacts of IT capabilities on hotel competitiveness. Findings This study finds that expenditures on IT Labor, IT Systems and IT Websites exert different impacts on hotel competitiveness. In addition, IT capabilities exert both contemporary and lagged effects on hotel competitiveness. Originality/value This study is the first that uses financial data to capture direct measures of individual IT capabilities and tests the individual impacts of IT capabilities on hotel competitiveness from both contemporaneous and lagged perspectives. It uses a large same store sample of hotels in the USA from 2011 to 2017; as a result, the study results can be reasonably representative of the hotel population in the USA.

scholarly journals Variations in American marketing practices of early 19th-century ceramic importers and dealers, reflecting culture and identity

2020 ◽  
Vol 12 (3) ◽  
pp. 345-375
Author(s):  
Neil Ewins
Keyword(s):  
19Th Century ◽  
Design Methodology ◽  
Marketing Research ◽  
Early 19Th Century ◽  
Content Type ◽  
Advertising Strategy ◽  
Political Views ◽  
The Usa ◽  
Anglo American ◽  
The 19Th Century

Purpose This paper explores the advertising strategy of crockery importers and dealers in relationship to their origins and backgrounds. This is a departure from earlier ceramic-history literature which tended to focus on the Staffordshire producers, with limited awareness on how the identity of importers and dealers influenced what products were sold, and their individual approaches to marketing. Design/methodology/approach Within a context of historical marketing research, this paper analyses newspaper advertising and commentary. It combines an examination of marketing practices with a wider consideration of the cultural identities of ceramic importers and dealers. The digitalization of historical records, combined with sophisticated search engines, makes it more feasible to examine a broader range of sources. Thus, modern research methods can enhance our understanding of production and demand and reveal how marketing strategy was diverse. Findings Awareness on how advertising was influenced by the backgrounds and socio-political views of importers and dealers demonstrates ways in which Anglo-American ceramic trade could be far more market-led. More significantly, marketing approaches were not necessarily responding to American demand, but rather that importers could engage in commissioning goods which reflected their own views on politics, religion or slavery. Originality/value Examining the advertising of importers demonstrates the complex relationship between production and ceramic demand. This paper opens up debates as to how far the advertising of other merchandise in the USA shows evidence of taking a more individual approach by the 19th century.

They did not start the fire: reviewing and resolving the issue of physician stress and burnout

2017 ◽  
Vol 31 (4) ◽  
pp. 410-417 ◽  
Author(s):  
Julie Christine Babyar
Keyword(s):  
Design Methodology ◽  
Intervention Studies ◽  
Future Research ◽  
Organizational Strategies ◽  
Physician Burnout ◽  
Content Type ◽  
Current State ◽  
The Usa ◽  
Research Accountability ◽  
Physician Stress

Purpose Physician stress and burnout is a serious and common concern in healthcare, with over half of physicians in the USA meeting at least one criterion for burnout. The paper aims to discuss these issues. Design/methodology/approach A review on current state of physician stress and burnout research, from 2008 to 2016, was undertaken. A subsequent perspective paper was shaped around these reviews. Findings Findings reveal research strength in prevalence and incidence with opportunities for stronger intervention studies. While descriptive studies on causes and consequences of physician burnout are available, studies on interventions and prevention of physician burnout are lacking. Future research on physician stress and burnout should incorporate intervention studies and take care to avoid limitations found in current research. Accountability and prevention of physician burnout is the responsibility of the healthcare industry as a whole, and organizational strategies must be emphasized in future research. Originality/value The value of this research comes in the original comprehensive review, international inclusion and succinct summary of physician burnout research and strategies.

scholarly journals Implications of divergences in adult protection legislation

2016 ◽  
Vol 18 (3) ◽  
pp. 149-160 ◽  
Author(s):  
Lorna Montgomery ◽  
Janet Anand ◽  
Kathryn Mackay ◽  
Brian Taylor ◽  
Katherine C. Pearson ◽  
...  
Keyword(s):  
Design Methodology ◽  
Elder Abuse ◽  
Consensus Model ◽  
Content Type ◽  
Legal Responses ◽  
The Usa ◽  
Protection Legislation ◽  
The Uk ◽  
Practical Implications ◽  
Adult Protection

Purpose – The purpose of this paper is to explore the similarities and differences of legal responses to older adults who may be at risk of harm or abuse in the UK, Ireland, Australia and the USA. Design/methodology/approach – The authors draw upon a review of elder abuse and adult protection undertaken on behalf of the commissioner for older people in Northern Ireland. This paper focusses on the desk top mapping of the different legal approaches and draws upon wider literature to frame the discussion of the relative strengths and weaknesses of the different legal responses. Findings – Arguments exist both for and against each legal approach. Differences in defining the scope and powers of adult protection legislation in the UK and internationally are highlighted. Research limitations/implications – This review was undertaken in late 2013; while the authors have updated the mapping to take account of subsequent changes, some statutory guidance is not yet available. While the expertise of a group of experienced professionals in the field of adult safeguarding was utilized, it was not feasible to employ a formal survey or consensus model. Practical implications – Some countries have already introduced APL and others are considering doing so. The potential advantages and challenges of introducing APL are highlighted. Social implications – The introduction of legislation may give professionals increased powers to prevent and reduce abuse of adults, but this would also change the dynamic of relationships within families and between families and professionals. Originality/value – This paper provides an accessible discussion of APL across the UK and internationally which to date has been lacking from the literature.

Assessing university police officers’ uniforms and wearing experiences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Brooke Brandewie ◽  
Injoo Kim ◽  
Myoung-Ok Kim
Keyword(s):  
Police Officers ◽  
Design Methodology ◽  
Uniform Design ◽  
Content Type ◽  
Specific Performance ◽  
The Usa ◽  
Emotional Aspects ◽  
Municipal Police ◽  
The University

Purpose This study aims to suggest opportunities for enhancing the police uniform design with consideration to the emotional and physical satisfaction of the wearers, by assessing the wearing experience. Design/methodology/approach University police officers at a University in the Midwestern region of the USA were surveyed to examine both psychological and emotional aspects including performance, comfort, professionalism and empowerment, as well as their satisfaction levels with fit, fabrics, aesthetics and functionality. Findings The study found that the wearing experience was poor, and not surprisingly, fabric satisfaction ranked the lowest of all factors. In regard to color, results showed that the uniforms should be in colors that are suitable to the university context, which in this case the wearers preferred the University athletic colors of black and red. It is easier to consider these colors, as they are a part of their organization and also enable the police to stand apart from municipal police, contrary to previous research demonstrating dark colors have negative connotations. Findings suggest that the university police uniform should have an athletic style with a regular fit, using specific performance fabrics that allow for stretch and breathability. Originality/value This study assesses the police uniform design and wearing experience and suggests design details to enhance how well officers physically perform in their role and also to inspire them to feel proud of their job and organization.

Century plus journeys: using career crafting to explore the career success of pioneer women accountants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohini P. Vidwans ◽  
Rosalind H. Whiting
Keyword(s):  
New Zealand ◽  
Great Britain ◽  
Organizational Support ◽  
Career Success ◽  
Design Methodology ◽  
Content Type ◽  
The Usa ◽  
Political Economic ◽  
Pioneer Women ◽  
Insight Into

PurposeThe purpose of this study is to explore the struggle for entry and career success of the early pioneer women accountants in Great Britain and its former colonies the USA, Canada, Australia and New Zealand.Design/methodology/approachA career crafting matrix guides the analysis of historical information available on five pioneer women accountants in order to understand their success in gaining entry into the profession and their subsequent careers.FindingsDespite an exclusionary environment, career crafting efforts coupled with family and organizational support enabled these women to become one of the first female accountants in their respective countries. Their struggles were not personal but much broader—seeking social, political, economic and professional empowerment for women.Originality/valueThis is the first paper to utilize the career crafting matrix developed from current female accountants' careers to explore careers of pioneering female accountants. It adds to the limited literature on women actors in accounting and may provide insight into approaching current forms of difference and discrimination.

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