Date of this Version
Journal of Financial Economics
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.
©2006. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0
international cross-listing, earnings announcements, trading volume, volatility
Bailey, W. B., Karolyi, G., & Salva, C. (2006). The Economic Consequences of Increased Disclosure: Evidence From International Cross-Listings. Journal of Financial Economics, 81 (1), 175-213. http://dx.doi.org/10.1016/j.jfineco.2005.06.002
Date Posted: 27 November 2017
This document has been peer reviewed.