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American Depositor y Receipt s (ADRs ) hav e bee n increasingl y use d i n th e Share Issu e Privatizatio n proces s (SIP ) b y privatizin g government s bot h i n developed an d developin g countries . I n thi s stud y long-ter m performanc e o f 143 privatizatio n relate d AD R program s wer e analyzed . Th e AD R program s covered i n th e stud y wer e initiate d betwee n 198 4 an d 1999 , an d include d a diverse mi x o f companie s fro m 2 9 differen t industrie s acros s 3 1 develope d a n emerging markets . Th e analysi s o f th e lon g ru n performanc e o f thes e programs reveale d interestin g patterns . I n al l cases , averag e cumulativ e returns an d averag e cumulativ e abnorma l return s o f develope d countr y privatization relate d ADR s exceede d emergin g marke t privatizatio n returns . Same conclusio n wa s reache d b y usin g a n alternativ e retur n calculatio n methodology. Whil e sampl e companie s generall y outperforme d thei r respective countr y indice s an d F T Worl d index , the y unde r performe d th e S&P500 Index. 2-Privatization, International Share Issues and ADRs 2.1-Share Issue PrivatizationsPrivatization ha s dramaticall y reduce d th e rol e o f stat e i n economi c activity i n man y reformin g countries . Thos e countrie s tha t hav e adopte d largescale privatizatio n program s hav e bee n motivate d b y thre e principa l reasons . government's desir e t o promot e furthe r developmen t o f th e nationa l stoc k markets motivat e privatization s vi a shar e offerings . Privatizin g vi a shar e offering allow s a countr y withou t a histor y o f shar e offering s t o establis h a reputation fo r protectin g investor s throug h repeated , fai r issues . Th e sam e strategy als o allow s a countr y wit h a n existin g poo r reputatio n t o chang e market perceptions. 2.2-Motivations For International/Global Share Issues in PrivatizationAs i t wa s briefl y mentione d above , privatizatio n literatur e indicate s that domesti c financia l marke t developmen t i s ofte n a n explici t objectiv e o f privatization programs 3 . I n thi s respect , searc h fo r alternativ e venue s an d decision t o lis t a privatizatio n candidat e i n internationa l market s ma y appea r t o be a paradox , fo r th e fractio n o f equit y t o b e allocate d t o foreig n investor s ar e traded abroad . Whil e th e contex t o f privatizatio n ma y provid e som e answer s to thi s puzzle , i t i s pruden t t o tak e a loo k a t th e growin g literatur e i n crosslistings and global share offerings for answers.In a recen t stud y investigatin g th e factor s determinin g th e globa l equity offering s b y U S firms , W u an d Kwo k (1999 ) summariz e th e motivations fo r globa l listings . Severa l o f thes e motivation s ma y als o b e

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