Investor Protection, Cross-listing and Accounting Quality

Research output: Contribution to journalArticlepeer-review

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Investor Protection, Cross-listing and Accounting Quality. / Kamarudin, Khairul Annuar; Ariff, Akmalia ; Jaafar, Aziz.
In: Journal of Contemporary Accounting and Economics, Vol. 16, No. 1, 100179, 04.2020.

Research output: Contribution to journalArticlepeer-review

HarvardHarvard

Kamarudin, KA, Ariff, A & Jaafar, A 2020, 'Investor Protection, Cross-listing and Accounting Quality', Journal of Contemporary Accounting and Economics, vol. 16, no. 1, 100179. https://doi.org/10.1016/j.jcae.2019.100179

APA

Kamarudin, K. A., Ariff, A., & Jaafar, A. (2020). Investor Protection, Cross-listing and Accounting Quality. Journal of Contemporary Accounting and Economics, 16(1), Article 100179. https://doi.org/10.1016/j.jcae.2019.100179

CBE

Kamarudin KA, Ariff A, Jaafar A. 2020. Investor Protection, Cross-listing and Accounting Quality. Journal of Contemporary Accounting and Economics. 16(1):Article 100179. https://doi.org/10.1016/j.jcae.2019.100179

MLA

Kamarudin, Khairul Annuar, Akmalia Ariff, and Aziz Jaafar. "Investor Protection, Cross-listing and Accounting Quality". Journal of Contemporary Accounting and Economics. 2020. 16(1). https://doi.org/10.1016/j.jcae.2019.100179

VancouverVancouver

Kamarudin KA, Ariff A, Jaafar A. Investor Protection, Cross-listing and Accounting Quality. Journal of Contemporary Accounting and Economics. 2020 Apr;16(1):100179. Epub 2019 Dec 4. doi: https://doi.org/10.1016/j.jcae.2019.100179

Author

Kamarudin, Khairul Annuar ; Ariff, Akmalia ; Jaafar, Aziz. / Investor Protection, Cross-listing and Accounting Quality. In: Journal of Contemporary Accounting and Economics. 2020 ; Vol. 16, No. 1.

RIS

TY - JOUR

T1 - Investor Protection, Cross-listing and Accounting Quality

AU - Kamarudin, Khairul Annuar

AU - Ariff, Akmalia

AU - Jaafar, Aziz

N1 - 18 months embargo

PY - 2020/4

Y1 - 2020/4

N2 - 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.

AB - 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.

KW - Cross-listing

KW - accounting quality

KW - conservatism

KW - value-relevance

KW - earnings management

U2 - https://doi.org/10.1016/j.jcae.2019.100179

DO - https://doi.org/10.1016/j.jcae.2019.100179

M3 - Article

VL - 16

JO - Journal of Contemporary Accounting and Economics

JF - Journal of Contemporary Accounting and Economics

SN - 1815-5669

IS - 1

M1 - 100179

ER -