TY - JOUR
T1 - Chinese and Global ADRs
T2 - The US Investor Experience
AU - Bessembinder, Hendrik
AU - Chen, Te Feng
AU - Choi, Goeun
AU - Wei, K. C.John
N1 - Funding Information: The authors thank William Goetzmann (the executive editor) and two anonymous referees for constructive and insightful comments and suggestions that have significantly improved the article. Te-Feng Chen and John Wei acknowledge financial support from the Research Grants Council of the Hong Kong SAR, China (GRF15505518). Publisher Copyright: © 2021, CFA Institute.
PY - 2021
Y1 - 2021
N2 - 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.
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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U2 - 10.1080/0015198X.2021.1915087
DO - 10.1080/0015198X.2021.1915087
M3 - Article
SN - 0015-198X
VL - 77
SP - 53
EP - 68
JO - Financial Analysts Journal
JF - Financial Analysts Journal
IS - 3
ER -