The impact of national culture on the synchronicity of cross-listed firms

Abed Al-Nasser Abdallah, Wissam Abdallah and Mohsen Saad

Finance Research Letters, 2022, vol. 46, issue PA

Abstract: We examine the impact of national culture on the relationship between International Financial Reporting Standards (IFRS) adoption and stock price synchronicity for a sample of cross-listed firms in the U.S. We find that synchronicity decreases when the cross-listed firms reconcile their accounts from IFRS to U.S. GAAP. The synchronicity reduction is more pronounced for firms from secretive societies (i.e., low individualistic and masculine cultures, and high uncertainty avoidance and power distance cultures). Our results reveal that IFRS adoption improves firm-specific information, and national culture affects such improvement.

Keywords: Synchronicity; Culture; Reconciliation; IFRS (search for similar items in EconPapers)
JEL-codes: G17 G30 M40 M41 M48 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321003275

DOI: 10.1016/j.frl.2021.102293

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