e-journal

Accounting quality of German and UK cross-listings

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Purpose – This paper aims to compare the quality of financial reporting (or accounting quality) of
firms cross-listed in Germany and the United Kingdom relative to domestic firms that are not
cross-listed in Germany and the United Kingdom.
Design/methodology/approach – The authors assess financial reporting quality based on five
measures of earnings management; two measures of timely loss recognition; and the explanatory
power (R 2) of three models of stock price and returns association with accounting data. Accounting
quality is associated with less earnings management, more timely loss recognition and higher stock
price/returns association with accounting data.
Findings – The authors find that there is no difference in financial reporting quality of firms
cross-listed in Germany and the United Kingdom and domestic firms that do not cross-list in these
countries. They further find that German and UK cross-listing firms have lower accounting quality
than US cross-listing firms.
Research limitations/implications – The study is subject to some limitations. Cross-listing firms
may be different from non-cross-listing firms in characteristics other than country, size and
cross-listing, the variables used to match the firms. The authors also lose quite a number of
observations due to the matching process and therefore are limited by a small sample size.
Originality/value – This paper contributes to a growing literature on cross-listing and quality of
financial reporting. The authors extend Lang et al.’s work to exchanges outside of the USA. They
provide further support for Coffee, and Lang et al. that firms cross-listed in the USA conform to higher
reporting standards than others, in particular in comparison with firms cross-listed in Germany.

Keywords Accounting, Financial reporting quality, Cross-listings, Germany, United Kingdom

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Ketersediaan

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Informasi Detail

Judul Seri

International Journal of Accounting and Information Management

No. Panggil

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Penerbit

: Emerald Group., 2013

Deskripsi Fisik

International Journal of Accounting and Information Management Vol. 21 No. 3, 2013 pp. 192-208

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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