We provide current evidence to show that the numbers of sponsored depositary receipts created and cross-listed have increased by more than two-fold over the last decade and a substantial proportion of this growth came from the emerging and developing economies. We argue that the needs of this...

We construct a model whereby stock exchanges take a new role as an information intermediary, notably absent in their roles. We show that exchanges differentiate themselves at subgame perfect equilibrium and will not race to the top or to the bottom.

"The evidence we uncover suggests that the practice of profit and risk sharing among keiretsu firms reduces the firm level idiosyncratic risk. However, rather than eliminating firm-level risk, it is being transformed into market-level risk. Since market-level risk is priced, this actually...