Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5092998 | Journal of Contemporary Accounting & Economics | 2007 | 33 Pages |
Abstract
We examine whether current disclosure requirements affect foreign firms' decisions to list on a US exchange. We document that (1) while firms from a weak disclosure environment are more likely to cross-list and either trade OTC or be placed privately, they are less likely to list on an exchange in which firms are required to comply with US GAAP, (2) exchange-listing firms receive a higher valuation than non-exchange-listing firms, and (3) exchange-listing firms domiciled in a higher disclosure regime, who incur lower costs of US GAAP compliance, generally receive a higher valuation than exchange-listing firms from a lower disclosure regime.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business, Management and Accounting (General)
Authors
Ole-Kristian Hope, Tony Kang, Yoonseok Zang,