Regulation Change Forces Foreign Firms In To U.S. Financial Market

In an attempt to make U.S. financial markets more attractive for foreign firms, a new Securities and Exchange Commission deregulation effort post-Sarbanes-Oxley has had the opposite effect. The outcome has been that one of the historically-rarest type of cross-listing is now the most prevalent, courtesy of depositary banks creating unsponsored American deposit receipts (ADRs). The author reveals that the majority of foreign firms are now trading on Over-The-Counter (OTC) markets rather than major exchanges, to their detriment.

Provided by: Southern Methodist University Topic: Innovation Date Added: Jul 2010 Format: HTML

Find By Topic