LAUSR

ABSTRACT This study examines the initial three-year holding period returns of the 202 ADRs listed from 1990 through 2015 and traded on the NASDAQ relative to the corresponding holding period returns(HPRs) of the NASDAQ Index. The average ADR holding period returns and excess returns exhibit skewed results. The average ADR 3-year holding period return was 47.7 percent while the average excess holding-period return was 13.2 percent. The median ADR lost 34.1 percent and the median ADR excess HPR was −31.2 percent relative to the NASDAQ. European listings outperformed those from other regions. In particular, ADRs from firms headquartered in the UK and Ireland were the best performers.