Investor Protection, Cross-listing and Accounting Quality

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  • 2019 Investor Protection

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    Embargo yn dod i ben: 4/12/21

Dangosydd eitem ddigidol (DOI)

Using 42,808 firm-year observations from 32 countries around the world, we investigate whether cross-listing in the US is associated with better accounting quality, and whether investor protection moderates the effect of cross-listing on accounting quality. Our main results show firms that are cross-listed in the US exhibit more timely reporting of losses, greater tendency to manage earnings downward, and more value relevance of accounting numbers as compared to their domestic counterparts. Cross-listed firms originating from high investor protection jurisdictions, particularly in high anti-director rights and common law countries, exhibit greater tendency to recognise a more timely reporting of losses and to manage earnings downward but exhibit lower value relevance of earnings as compared to cross-listed firms domiciled in low anti-director rights and non-common law countries. These results suggest that the strength of investor protection in home country plays an important role in determining the quality of accounting numbers of cross-listed firms.

Allweddeiriau

Iaith wreiddiolSaesneg
Rhif yr erthygl100179
CyfnodolynJournal of Contemporary Accounting and Economics
Cyfrol16
Rhif y cyfnodolyn1
Dyddiad ar-lein cynnar4 Rhag 2019
Dynodwyr Gwrthrych Digidol (DOIs)
StatwsCyhoeddwyd - Ebr 2020
Gweld graff cysylltiadau