DRs add value and liquidity, study shows

Study finds that depository receipt programmes on average add over 10% of shareholder value in the first year. The improvement is higher for Chinese companies which add 40% of value.

Company managers who are concerned about their share price performance may want to take a closer look at a recent study, which has found that Asian companies with established depositary receipts programmes can gain significant value and liquidity advantages compared with companies without DRs.

The study, which has been conducted by independent research firm Oxford Metrica in association with Bank of New York Mellon, also shows that companies with DRs have shown more resilience during the current financial...

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