Chinese and Global ADRs: The US Investor Experience

Bessembinder Hendrik; Te-Feng Chen; Goeun choi; Kuo-chiang Wei

doi:10.1080/0015198X.2021.1915087

Chinese and Global ADRs: The US Investor Experience

Bessembinder Hendrik
, Te-Feng Chen
, Goeun choi
, Kuo-chiang Wei

School of Accounting and Finance

Research output: Journal article publication › Journal article › Academic research › peer-review

3 Citations (Scopus)

Abstract

We study outcomes to ADR (American Depositary Receipt) investments between August 1954 and September 2020, with particular attention to ADRs associated with Chinese firms. Overall, ADRs improved investors’ wealth by $1.03 trillion, with more than a third of this amount attributable to ADRs associated with Chinese firms. A value-weighted portfolio of ADRs associated with Chinese firms earned 14.1% per year since the first Chinese ADR was created in 1993, as compared with 9.9% per year for the overall US stock market over the same period. These data are relevant to current policy discussions focused on Chinese firms listed in the United States.

Original language	English
Pages (from-to)	53-68
Journal	Financial Analysts Journal
Volume	77
Issue number	3
Early online date	19 May 2021
DOIs	https://doi.org/10.1080/0015198X.2021.1915087
Publication status	Published - Aug 2021

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10.1080/0015198X.2021.1915087

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title = "Chinese and Global ADRs: The US Investor Experience",

abstract = "We study outcomes to ADR (American Depositary Receipt) investments between August 1954 and September 2020, with particular attention to ADRs associated with Chinese firms. Overall, ADRs improved investors{\textquoteright} wealth by \$1.03 trillion, with more than a third of this amount attributable to ADRs associated with Chinese firms. A value-weighted portfolio of ADRs associated with Chinese firms earned 14.1\% per year since the first Chinese ADR was created in 1993, as compared with 9.9\% per year for the overall US stock market over the same period. These data are relevant to current policy discussions focused on Chinese firms listed in the United States.",

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AB - We study outcomes to ADR (American Depositary Receipt) investments between August 1954 and September 2020, with particular attention to ADRs associated with Chinese firms. Overall, ADRs improved investors’ wealth by $1.03 trillion, with more than a third of this amount attributable to ADRs associated with Chinese firms. A value-weighted portfolio of ADRs associated with Chinese firms earned 14.1% per year since the first Chinese ADR was created in 1993, as compared with 9.9% per year for the overall US stock market over the same period. These data are relevant to current policy discussions focused on Chinese firms listed in the United States.

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Chinese and Global ADRs: The US Investor Experience

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