The real earnings management of cross-listing firms

Klaus S. Beckmann, Diego Escobari and Thanh Ngo

Global Finance Journal, 2019, vol. 41, issue C, 128-145

Abstract: We examine the existence of real and accrual-based earnings management before and after cross-listings on the U.S. market. The results indicate that firms actively manage their earnings around cross-listing events, using both accrual and real earnings management, but real earnings management is dominant. American Depositary Receipts (ADRs) cross-listed at Level 1 and sponsored ADRs show the largest increase in real earnings management from before to after the listing. Firms that have adopted International Financial Reporting Standards (IFRS) display lower increases than firms under domestic GAAP. Finally, our results confirm a significant negative relationship between long-run performance and real earnings management before and after major corporate events.

Keywords: Real earnings management; IFRS; ADR; Cross-listing (search for similar items in EconPapers)
JEL-codes: G12 G14 G15 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1044028318302618
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:41:y:2019:i:c:p:128-145

DOI: 10.1016/j.gfj.2019.04.001

Access Statistics for this article

Global Finance Journal is currently edited by Manuchehr Shahrokhi

More articles in Global Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().