Home and foreign host country IFRS adoption and cross-delisting

• 成果类型: Article
• 署名作者: Kanagaretnam, Kiridaran; Kong, Xiangting; Tsang, Albert
• 署名单位: York University - Canada; Sun Yat Sen University; Hong Kong Polytechnic University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00300-1
• 发表日期: 2020
• 页码: 1008-1033
• 关键词: MANDATORY IFRS ADOPTION; Delisting; Cross-listing; analysts following; INSTITUTIONAL OWNERSHIP

摘要

This study examines whether and how the mandatory adoption of international financial reporting standards (IFRS) affects a firm's cross-delisting decision. Using a comprehensive sample of international cross-delistings, we show that mandatory IFRS adoption in the cross-listing host countries of multinational enterprises (MNEs) increases the delisting propensity of non-IFRS-reporting firms. In contrast, mandatory IFRS adoption in both home and host countries of cross-listing firms decreases the delisting propensity of MNEs in the post-IFRS period. The results of cross-sectional tests further suggest that the increased cross-delisting propensity for domestic GAAP-reporting firms post-IFRS adoption in foreign host countries is more pronounced for firms with a greater difference between domestic GAAP and IFRS. Overall, our results show the differential effects of IFRS adoption in home/host countries of MNEs on their cross-delisting decisions.