Abstract
In recent years, in order to promote the active participation of foreign issuers in Taiwan’s capital market and meet investor’s demand for investment diversification, and also enhance Taiwan’s stock market internationalization and competitiveness, the government actively promotes primary listing and issuance of Taiwan Depositary Receipts. However, the foreign issuer registered overseas, its registration may be throughout the world, and it is subject to local country law norms. Regarding the corporate governance, accounting expose protect shareholders' equity and supervision standards, it is different from Taiwan’s law. Therefore, whether the primary listing or TDR, it is important for investors to evaluate the potential risks. This paper will adopt four stages, respectively, literature review, laws and regulations review, comparison analysis and case studies analysis. Moreover, using DuPont analysis interspersed among them as a data corroboration to two foreign companies listed in Taiwan.