The economic consequences of increased disclosure: Evidence from international cross-listings

• 成果类型: Article
• 署名作者: Bailey, Warren; Karolyi, G. Andrew; Salva, Carolina
• 署名单位: Cornell University; University System of Ohio; Ohio State University; University of Neuchatel
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.06.002
• 发表日期: 2006
• 页码: 175-213
• 关键词: International cross-listing; earnings announcements; trading volume; volatility

摘要

We examine market behavior around earnings announcements to understand the consequences of the increased disclosure that non-U.S. firms face when listing shares in the U.S. We find that absolute return and volume reactions to earnings announcements typically increase significantly once a company cross-lists in the U.S. Furthermore, these increases are greatest for firms from developed countries and for firms that pursue over-the-counter listings or private placements, which do not have stringent disclosure requirements. Additional tests support the hypothesis that it is changes in the individual firm's disclosure environment, rather than changes in its market liquidity, ownership, or trading venue, that explain our findings. (c) 2005 Elsevier B.V. All rights reserved.