25. Coming to
America: The Case of ICICI Bank
Presenter: Niranjan Chipalkatti, Ohio Northern University
Description: The session will
describe a research project conducted by students in an international
accounting course. The objective of the research project is to provide a
capital market context to accounting disclosures, and (1) to develop research
and problem-solving skills as well as (2) report-writing skills of accounting
seniors. Broad business perspectives introduced in the case include (1) issues
involving the banking sector in emerging market countries and (2) legal and
regulatory issues related to ADR programs.
The project involves an examination
of the change in the level of annual report disclosures made by an Indian bank
(ICICI Bank Ltd.) that issued American Depositary Receipts (ADR) on the NYSE on
March 28, 2000. Students will be provided a list of disclosures that are
considered transparency-enhancing as per Basle Committee and that are
consistent with IAS No. 30. Based on this instrument, they will be asked to
assess the improvement in the annual report disclosure score of ICICI Bank Ltd.
over the 1999-2000 period. To assess the incremental value of the subsequent
filing of the Form 20F required by the SEC, students are asked to statistically
evaluate the stock markets' reaction (both Indian and U.S.) to the same.
