ADRs, analysts, and accuracy: Does cross listing in the United States improve a firm's information environment and increase market value?

• 成果类型: Article
• 署名作者: Lang, MH; Lins, KV; Miller, DP
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Utah System of Higher Education; University of Utah; Indiana University System; Indiana University Bloomington
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.00106
• 发表日期: 2003
• 页码: 317-345
• 关键词: cost; segmentation; disclosure; prices; RISK

摘要

This paper investigates the relation between cross listing in the United States and the information environment of non-U.S. firms. We find that firms that cross list on U.S. exchanges have greater analyst coverage and increased forecast accuracy than firms that are not cross listed. A time-series analysis shows that a change in analyst coverage and forecast accuracy occurs around cross listing. We also document that firms that have more analyst coverage and higher forecast accuracy have higher valuations. Furthermore, the change in firm value around cross listing is correlated with changes in analyst following and forecast accuracy, suggesting that cross listing enhances firm value through its effect on the firm's information environment. Our findings support the hypothesis that cross-listed firms have better information environments, which are associated with higher market valuations.