Accounting quality and countries institutional characteristics: Evidence from multinational firms

Nizar Berrim, Imen Ghadhab and Hamza Nizar
Additional contact information
Nizar Berrim: Sidi Alouane 5190, Mahdia, Tunisia
Imen Ghadhab: Sidi Alouane 5190, Mahdia, Tunisia
Hamza Nizar: Sidi Alouane 5190, Mahdia, Tunisia

International Journal of Financial Engineering (IJFE), 2024, vol. 11, issue 01, 1-25

Abstract: This paper investigates the dynamics of cross-listing in the US and accounting quality. Using an unbalanced panel of 11,780 observations for the period 2000–2019, we show that cross-listing improves accounting quality (in terms of conservatism, earnings management and informational relevance). This result holds for both types of cross-listing (i.e., exchange and OTC listing). Moreover, taking institutional variables into account leads to the conclusion that companies from countries with a weak legal and informational environment have better accounting quality following compliance with the strict standards of shareholder protection and disclosure of information imposed by US authorities. Finally, a complementary analysis shows us that companies listed in the US benefit from a better accounting quality record and less investment inefficiency. This explains why cross-listing in the US reduces the inefficiency of investments thanks to better accounting quality.

Keywords: Cross-listing; accounting quality; bonding theory (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2424786323500640
Access to full text is restricted to subscribers

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:wsi:ijfexx:v:11:y:2024:i:01:n:s2424786323500640

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2424786323500640

Access Statistics for this article

International Journal of Financial Engineering (IJFE) is currently edited by George Yuan

More articles in International Journal of Financial Engineering (IJFE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().