Date of Award

Summer 5-2017

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

First Advisor

Tyler Brough

Abstract

This study examines the relationship between financial development in a particular country and the volatility and illiquidity of ADR’s cross-listed on American exchanges, that correspond to the particular home country. Tests show that financial development and illiquidity are inversely related, thus, financial development improves liquidity and reduces volatility. The results have important implications for individual investors, firms seeking to lower their cost of capital, and the economic well-being of countries in general.

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