Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues Qing L. Burke Tim V. Eaton Miami University

Q2. Non-U.S. companies, such as Alibaba Group, generally use American depository receipts to establish a trading presence on U.S. stock exchanges. a. The terms American depository receipt (ADR) and American depository share (ADS) are often used interchangeably. What is an ADR and what is an ADS? b. Explain why U.S. stock exchanges have attracted non-U.S. companies share listings. Provide at least two reasons.