Tapping International Equity Markets Through Depository Receipts : Lessons from the Telecoms Sector

Mustafa, Mohammad A. ; Fink, Carsten

World Bank, Washington, DC

关键词: ACCOUNTING;    ARBITRAGE;    CAPITAL MARKETS;    COMPANY;    CORPORATE GOVERNANCE;   

RP-ID  :  17754

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Ongoing privatization and financialliberalization in emerging economies have let to continuousgrowth in the number of depository receipt offerings fromthese countries. Asian and Latin American companies havebeen the biggest source of offerings. The main advantages ofdepository receipts stem from the greater market depth andliquidity offered by international capital markets:telecommunications companies are sometimes too big for localmarkets to absorb, and more active trading attracts a widershareholder base, implies continuous evaluation of acompany's value, and increases management'saccountability for a company's financial performance.International offerings also enhance the legitimacy ofshares because companies must comply with transparentaccounting rules and strict disclosure standards in the hostmarket. Experience has shown that to guard against failureof a depository receipt issue, much effort needs to be putinto choosing the right type of depository receipts,marketing the issue, forecasting investor demand, anddetermining the share price.