Cross-border trading as a mechanism for implicit capital flight: ADRs and the Argentine crisis

• 成果类型: Article
• 署名作者: Auguste, Sebastian; Dominguez, Kathryn M. E.; Kamil, Herman; Tesar, Linda L.
• 署名单位: University of Michigan System; University of Michigan; National Bureau of Economic Research; International Monetary Fund
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.05.012
• 发表日期: 2006
• 页码: 1259-1295
• 关键词: ADRs; argentina; capital controls; capital flight; Venezuela

摘要

Cross-listed shares may confound government efforts to control capital outflows by providing a legal means through which investors can transfer their wealth outside the country. We study the recent experience of investors who while subject to capital controls, were able to purchase cross-listed shares using local currency, convert them into dollar-denominated shares, re-sell them abroad, and deposit the dollar proceeds in foreign bank accounts. Capital controls drive a wedge between the price of local shares and their corresponding cross-listed shares. This wedge provides an implicit devaluation forecast and the market's valuation of capital control circumvention. (c) 2006 Elsevier B.V. All rights reserved.