Accounting quality and information asymmetry of foreign direct investment firms

Li-Hsun Wang

Research in International Business and Finance, 2017, vol. 42, issue C, 950-958

Abstract: This study argues that the foreign direct investment firms mislead stakeholders and are associated with greater information asymmetry due to the raised agency problem. Results show that both earnings management and idiosyncratic volatility increase with foreign investment. Managerial ownership mitigates such inefficiency.

Keywords: Earnings management; Idiosyncratic risk; Foreign direct investment; Managerial ownership (search for similar items in EconPapers)
JEL-codes: G14 G30 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:42:y:2017:i:c:p:950-958

DOI: 10.1016/j.ribaf.2017.07.029

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