Going Global : Evidence from India

This study examines Indian firms that go public overseas through American Depository Receipts (ADRs) and Global Depositary Receipts (GDRs) and investigates the performance of ADRs and GDRs as a means of raising finance overseas for such firms. Our sample is composed of 124 firm year observation for the period between 2000 and 2018. We find that the market performance of ADR firms is positive and significant compared to GDR firms. Our analysis shows that ADR firms have improved post-listing performance and have better operating characteristics relative to GDR firms, possibly due to the higher visibility of US markets. Our findings enhance our understanding of firms that choose to access foreign capital markets in terms of post-market performance and operational characteristics in an emerging market setting such as India, with stringent rules for overseas listings