Accounting Papers

Document Type

Journal Article

Date of this Version

7-2006

Publication Source

Journal of Financial Economics

Volume

81

Issue

1

Start Page

175

Last Page

213

DOI

10.1016/j.jfineco.2005.06.002

Abstract

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.

Copyright/Permission Statement

©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

Comments

Andrew Karolyi was affiliated with the University of Pennsylvania at the time of publication but he is currently a faculty member at Cornell University.

Keywords

international cross-listing, earnings announcements, trading volume, volatility

Included in

Accounting Commons

Share

COinS
 

Date Posted: 27 November 2017

This document has been peer reviewed.