Global Depositary Receipts Case Study

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Global Depositary Receipts (GDR)
1. Characteristics Global depository Receipts (GDRs) means a security which accords a right to the registered holder to own a prescribed quantity of securities issued by a listed issuer, and which security is issued outside the jurisdiction of the United States of America. They are instruments that do not listed on US exchange but most commonly exchanges in London or Luxembourg .The characteristics of Global Depositary Receipts (GDR) are it is a secured security; it can be converted into number of shares, the redemption prices and are public in foreign agency, paid a fixed interest rate, and listed in the stock exchange market. Global Depositary Receipts are commonly listed on European stock exchanges such as the London Stock Exchange and they are usually denominated in U.S. dollar and in euros. They are usually offered to institutional investors through a private offering, in reliance on exemptions from registration under the Securities Act of 1933.
2. How does it work?
The Global Depositary Receipts (GDR) is
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How does it work?
FDI can, and has played a significant part in the development process. Many policy makers and academics contend that FDI had important positive effects on a host country’s development efforts (Lean, 2008). According to Wong (2013), the role of FDI in the host country which included the development of manufacturing industry, is becoming increasingly important.
Zubair Hasan (2003) shows that foreign exchange rate, export expansion, and infrastructural development are important factors in attracting FDI into Malaysia. The exchange rate has a negative relationship with FDI. This indicates that a weak currency will reduce FDI inflows. Other factors such as capital flight, growth rate, and balance of payments have minor impact on FDI inflows. The Engel-Granger test for co-integration however failed to support any long-term relationships between FDI and each explanatory variable.
3. Performance

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