PT - JOURNAL ARTICLE AU - Jungwon Suh TI - ADRs and U.S. Market Sentiment AID - 10.3905/joi.2003.319572 DP - 2003 Nov 30 TA - The Journal of Investing PG - 87--95 VI - 12 IP - 4 4099 - https://pm-research.com/content/12/4/87.short 4100 - https://pm-research.com/content/12/4/87.full AB - American Depositary Receipt share prices tend to diverge from parity values in the presence of foreign ownership restrictions on underlying shares and other capital barriers. A study of the time series behavior of ADR premiums or discounts under such market imperfections allows examination of the existence of a U.S. market-specific sentiment. The evidence in a sample of ADRs from emerging countries indicates that some ADR premium or discount changes are correlated with aggregate U.S. market returns. The evidence suggests that although ADRs are shares of foreign firms, their price movements are influenced by U.S. market sentiment because they are traded in the U.S.