This paper analyzes the effect of economic freedom on the liquidity of financial markets using a non-traditional approach. Using a sample of 393 American Depositary Receipts (ADRs), we examine the liquidity of these securities while conditioning on the level of economic freedom in the ADR home...

Using a unique research design, this paper examines how the level of trust in various countries affects liquidity in financial markets. In particular, we examine various measures of market liquidity in American Depositary Receipts (ADRs) while conditioning on the level of trust in the ADR's home...

We examine the effect of home market short-sale constraints on stocks that also trade in other countries that have more liberal short-sale rules. We focus on the case of ADRs traded in the U.S., as in some cases, the home markets of these ADRs prohibit short selling. We find that U.S. short...