Note: This paper has been published in the "International Review of Finance." It is published in: Vol 3, No.1, March 2002,pp. 27-52 of the journal.

"We study one-year post-listing prices and returns to equity issuing ADRs that listed in the US between January 1991 and October 2000. ADRs from countries that impose restrictions on capital flows are priced at a premium to their home market ordinaries. While the mean premium for the full sample...