Foreign exchange risk, world diversification and Taiwanese ADRs

Alan T. Wang, Sheng Yung Yang

研究成果: Article

6 引文 斯高帕斯(Scopus)


This study tries to answer the following question: Should the US investors purchase American depository receipts (ADRs) issued by Taiwanese multinationals? The conditional international asset pricing model of Dumas and Solnik (Journal of Finance, 50, 445-79, 1995) is applied to price these Taiwanese American depository receipts (ADRs). Empirical results show that foreign exchange risk is priced in Taiwanese ADRs. Moreover, Taiwanese ADRs are shown to help US investors diversify their portfolios globally. These findings suggest that Taiwanese ADRs are valid investment tools for US investors who seek international diversifications.

頁(從 - 到)755-758
期刊Applied Economics Letters
出版狀態Published - 2004 十月 10

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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