Publication
The spillover effect of ADR activity on stock price synchronicity: empirical evidence in emerging markets
| dc.contributor.author | Viana Junior, Dante Baiardo C. | |
| dc.date.accessioned | 2025-07-14T09:23:18Z | |
| dc.date.available | 2025-07-14T09:23:18Z | |
| dc.date.issued | 2025-12 | |
| dc.description.abstract | This study investigates the intra-industry spillover effect of American Depositary Receipt (ADR) issuance on the stock price synchronicity of non-ADR firms from emerging markets. Based on a sample of listed firms from six Latin American countries, although I find some evidence of a decrease in stock price synchronicity among ADR issuers in post-ADR issuance periods, the main findings suggest that non-ADR firms from industries with ADR issuance activity have higher levels of synchronicity on average than non-ADR firms from industries with no ADR issuance activity. These cross-country average results are robust to different regression methods and alternative subsamples employed to mitigate endogeneity concerns. Even though this trend is confirmed for the majority of the Latin American countries under review, individual-country analyses indicate a synchronicity-decreasing effect of ADR industry activity, particularly for non-ADR Chilean firms. Complementary, more in-depth empirical analyses suggest that country-level factors and ADR firm characteristics play an essential role in this issue. My main findings document that the overall positive spillover effect of ADR activity on the stock price synchronicity of non-ADR firms in Latin America is non-monotonic. These exploratory findings contribute to the active debate regarding the impact of ADR issuance on local economies, particularly with respect to the informativeness of financial reporting available in the capital markets. | eng |
| dc.identifier.doi | 10.1016/j.intaccaudtax.2025.100704 | |
| dc.identifier.issn | 1061-9518 | |
| dc.identifier.uri | http://hdl.handle.net/10400.1/27395 | |
| dc.language.iso | eng | |
| dc.peerreviewed | yes | |
| dc.publisher | Elsevier | |
| dc.relation | Center for Advanced Studies in Management and Economics | |
| dc.relation.ispartof | Journal of International Accounting, Auditing and Taxation | |
| dc.rights.uri | N/A | |
| dc.subject | American depositary receipt | |
| dc.subject | Stock price synchronicity | |
| dc.subject | Emerging markets | |
| dc.subject | Latin America | |
| dc.title | The spillover effect of ADR activity on stock price synchronicity: empirical evidence in emerging markets | eng |
| dc.type | journal article | |
| dspace.entity.type | Publication | |
| oaire.awardTitle | Center for Advanced Studies in Management and Economics | |
| oaire.awardURI | info:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDB%2F04007%2F2020/PT | |
| oaire.citation.startPage | 100704 | |
| oaire.citation.title | Journal of International Accounting, Auditing and Taxation | |
| oaire.citation.volume | 59 | |
| oaire.fundingStream | 6817 - DCRRNI ID | |
| oaire.version | http://purl.org/coar/version/c_970fb48d4fbd8a85 | |
| person.familyName | Viana Junior | |
| person.givenName | Dante Baiardo C. | |
| person.identifier.orcid | 0000-0001-6902-3057 | |
| project.funder.identifier | http://doi.org/10.13039/501100001871 | |
| project.funder.name | Fundação para a Ciência e a Tecnologia | |
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