GAAP Influence on Bid-Ask Spreads and Share Turnovers

This study examines the relationships between bid-ask spreads and share turnovers as proxies for information asymmetry and liquidity and the world zones where the entities are incorporated of Foreign Private Issuers that utilize various forms of GAAP for filing with the U.S. Securities and Exchange Commission for the period 2007 through 2010. The analyses are conducted utilizing descriptive statistics, a Kruskal-Wallis nonparametric test, and multivariate analysis of variance (MANOVA) tests. It was found that there was a statistically significant difference in bid-ask spreads and share turnovers as proxies for information asymmetry and liquidity based on the type of GAAP utilized for filing and the world zone of the country of incorporation