Disclosure and the cost of equity in international cross-listing

Review of Quantitative Finance and Accounting

Volumn 29, Issue 1, 2007, Pages 1-24

  Eaton, Tim V ^a   Nofsinger, John R ^b   Weaver, Daniel G ^c  

^a MIAMI UNIVERSITY   (United States)

^b WASHINGTON STATE UNIVERSITY   (United States)

^c RUTGERS UNIVERSITY   (United States)

Author keywords

Analyst following; Cost of equity; Disclosure; International accounting standards

Indexed keywords

EID: 34548222563     PISSN: 0924865X     EISSN: 15737179     Source Type: Journal    
DOI: 10.1007/s11156-007-0024-0     Document Type: Article

References (48)

1. Ali, A., & Hwang, L. S. (2000). Country-specific factors related to financial reporting and the value relevance of accounting data. Journal of Accounting Research, 38, 1-21.
2. Amihud, Y., & Mendelson, H. (1986). Asset prices and the bid ask spread. Journal of Financial Economics, 17, 223-249.
3. Amir, E., Harris, T. S., & Venuti, E. K. (1993). A comparison of the value-relevance of US versus non-US GAAP accounting measures using form 20-F reconciliations. Journal of Accounting Research, 31, 230-275.
4. Ashbaugh, H., & Olsson, P. (2002). An exploratory study of the valuation properties of cross-listing firms' IAS and US GAAP earnings and book values. Accounting Review, 77(1), 107-126.
5. Bailey, W., Karolyi, G. A., & Salva, C. (2006). The economic consequences of increased disclosure: Evidence from international cross-listings. Journal of Financial Economics, 81(1), 175-213.
6. Baker, K., Nofsinger, J., & Weaver, D. (2002). International cross listing and visibility. Journal of Financial and Quantitative Analysis, 37(3), 495-521
7. Bartov, E., Goldberg, S. R., & Myungsun, K. (2005). Comparative value relevance among German, US and internaional accounting standards: A global perspective. Journal of Accounting, Auditing and Finance, 20(2), 95-119.
8. Botosan, C. A. (1997). Disclosure level and the cost of equity capital. Accounting Review, 72, 323-349.
9. Botosan, C. A., & Plumlee, M. A. (2002). A re-examination of disclosure level and expected cost of equity capital. Journal of Accounting Research, 40(1), 21-40.
10. Campbell, J., Hermanson, H., & McAllister, J. (2002). Obstacles to international accounting standards convergence. Journal of Accountancy (May), 21-24.
11. Carrieri, F., Errunza, V., & Majerbi, B. (2006). Does emerging market exchange risk affect global equity prices? Journal of Financial and Quantitative Analysis, 41, 511-540.
12. Cheng, C., Collins, D., & Huang, H. (2006). Shareholder rights, financial disclosure, and the cost of equity capital. Review of Quantitative Finance and Accounting, 27, 175-204.
13. Coffee, J. (2002). Racing toward the top? The impact of cross-listing and stock market competition on international corporate governance. Northwestern University Law Review, 93, 641-708.
14. Doidge, C., Karolyi, G. A., & Stulz, R. M. (2004). Why are foreign firms listed in the US worth more? Journal of Financial Economics, 71, 205-238.
15. Easley, D., & O'Hara, M. (2004). Information and the cost of capital. Journal of Finance, 59, 1553-1583.
16. Errunza, V., Miller, D.P. (2000). Market segmentation and the cost of capital in international equity markets. Journal of Financial and Quantitative Analysis, 35, 577-600
17. Fama, E., & French, K. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33, 3-56.
18. Fama, E., French, K. (1998). Value versus growth: The international evidence. Journal of Finance, 53, 1975-1999.
19. Ferson, W., Sarkissian, S., & Simin, T. (1999). The alpha factor asset pricing model: A parable. Journal of Financial Markets, 2, 49-68
20. Foerster, S. R., & Karolyi, G. A. (1999). The effects of market segmentation and investor recognition on asset prices: Evidence from foreign stocks listing in the US. Journal of Finance, 54, 981-1013.
21. Foerster, S. R., Karolyi, G. A. (2000). The long-run performance of global equity offerings. Journal of Financial and Quantitative Analysis, 35, 499-528.
22. Griffin, J. (2002). Are the Fama and French factors global or country specific. Review of Financial Studies, 15, 783-803.
23. Harris, M. S., & Muller, K. A. III (1999). The market valuation of IAS versus US-GAAP accounting measures using Form 20-F reconciliations. Journal of Accounting and Economics, 26, 285-312.
24. Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31, 405-440.
25. Henry, P. B. (2000). Stock market liberalization, economic reform, and emerging market equity prices. Journal of Finance, 55, 529-564.
26. Huddart, S., Hughes, J. S., & Brunnermeier, M. (1999). Disclosure requirements and stock exchange listing choice in an international context. Journal of Accounting and Economics, 26, 237-269.
27. Hung, M. (2000). Accounting standards and value relevance of financial statements: an international analysis. Journal of Accounting & Economics, 30(3), 401-420.
28. Irani, A. (2004). The effect of regulation fair disclosure on the relevance of conference calls to financial analysts. Review of Quantitative Finance and Accounting, 22, 15-28.
29. Jain, P. (2003) Institutional design and liquidity on stock exchanges around the world, Working Paper, Indiana University.
30. Jorion, P. (1991). The pricing of exchange rate risk in the stock market. Journal of Financial and Quantitative Analysis, 26(3), 363-376.
31. Lakonishok, J., Shleifer, A., & Vishny, R. (1994). Contrarian Investment, Extrapolation and Risk. Journal of Finance, 49(5)1541-1578.
32. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1998). Law and finance. Journal of Political Economy, 106, 1113-1155.
33. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A., (1999). The quality of government. Journal of Law, Economics, and Organization, 15, 222-279.
34. Lang, M. H., Lins, K. V., & Miller, D. P. (2003a). ADRs, analysts, and accuracy: Does cross listing in the US improve a firm's information environment and increase market value? Journal of Accounting Research, 41, 317-345.
35. Lang, M. H., Lins, K. V., & Miller, D. P. (2004). Concentrated control, analyst following and valuation: Do analysts matter most when investors are protected least? Journal of Accounting Research, 42, 589-623.
36. Lang, M. H., & Lundholm, R. (1993). Cross-sectional determinants of analyst ratings of corporate disclosures. Journal of Accounting Research, 31, 246-271.
37. Lang, M. H., Smith-Raedy, J., & Yetman, M. H. (2003b). How representative are firms that are cross listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41, 363-386.
38. Leuz, C. (2003). IAS versus US GAAP: Information asymmetry-based evidence from Germany's new market. Journal of Accounting Research, 41(3), 445-472.
39. Merton, R. C. (1987). Presidential address: A simple model of capital market equilibrium with incomplete information. Journal of Finance, 42, 483-510.
40. NYSE Research, www.nyse.com
41. Patro, D., Wald, J., & Wu, Y. (2002). Explaining exchange rate risk in world stock markets: A panel approach. Journal of Banking and Finance, 26, 1951-1972.
42. Quinn, L. (2004). What's the state of international accounting standards? Strategic Finance (April), 35-39
43. Reason, T. (2002). On the same page. CFO, 18 (5), 89-92.
44. Rees, L., & Elgers, P. (1997). The market's valuation of nonreported accounting measures: Retrospective reconciliations of non-US and US GAAP. Journal of Accounting Research, 35, 115-126.
45. Reese, W. Jr., & Weisbach, M. (2002). Protection of minority shareholder interests, cross listings in the United States, and subsequent equity offerings. Journal of Financial Economics, 66, 65-104.
46. Stulz, R. M. (1999). Globalization, corporate finance, and the cost of capital. Journal of Applied Corporate Finance, 12(3), 8-25.
47. Valero-Tonone, M. (2002). The effects of cross-listing on rival firms, Arizona State University, Working paper.
48. White, H. (1980). A heteroscedasticity-consistent covariance matrix estimator and direct test for heteroscedasticity. Econometrica, 48, 817-838.