LEGAL ORIGIN, INVESTOR PERCEPTION, AND PRICING OF ACCRUALS FOR CROSS-LISTED FIRMS

Pervaiz Alam ； Frank Zhe-Feng Liu ； Sheldon Xiao-Feng Peng ； Yue Qi

《Advances in Quantitative Analysis of Finance and Accounting》 13期 (2015/12) Pp. 253-283

https://doi.org/10.6293/AQAFA.2015.13.10

並列摘要

Prior research has documented stronger investor protection and higher accrual quality in common law countries than in code law countries. Prior research also indicates that foreign firms cross-listed in the U.S. capital markets are likely to be different from their home country counterparts. Consistent with the reputation literature, investors inappropriately perceive that the U.S. listed foreign firms domiciled in common law countries have higher accrual quality than those in code law countries. We also document more severe overpricing of accruals for those cross-listed firms domiciled in common law countries, consistent with the market’s overestimation of the accrual quality for common law firms.

並列關鍵字

Legal Origin ； Market Efficiency ； Accrual Anomaly ； Stock Valuations ； Cross Listing

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