I examine the short- and long-term impact of the 2002 Sarbanes-Oxley Act (SOX) on cross-listed foreign private issuers. Both short- and long-term test results suggest that the costs of SOX compliance significantly exceed its benefits and reduce the net benefits of cross-listings

DeFond and Hung [DeFond, M., amp; Hung, M. (2007). Review of Accounting Studies, 12] test the conjecture whether financial analysts, due to demand-side pressure, compensate for the limited usefulness of reported earnings by issuing cash flow forecasts. They find that analysts supplement their...

A stock market liberalization is a decision by a country's government to allow foreigners to buy securities in that country's capital market. This study examines how the liberalization of the Korean stock market affected stock price behavior and changed the role accounting information for...

DeFond and Hung (2007) test the conjecture whether financial analysts, due to demand-side pressure, compensate for the limited usefulness of reported earnings by issuing cash flow forecasts. They find that analysts supplement their earnings forecasts more frequently with cash flow forecasts in...

We hypothesize debt markets - not equity markets - are the primary influence on association metrics studied since Ball and Brown (1968). Debt markets demand high scores on timeliness, conservatism and Lev's (1989) RSQ, because debt covenants utilize reported numbers. Equity markets do not rate...

We hypothesize debt markets - not equity markets - are the primary influence on quot;associationquot; metrics studied since Ball and Brown (1968). Debt markets demand high scores on timeliness, conservatism and Lev's (1989) R2, because debt covenants utilize reported numbers. Equity markets do...

We provide evidence on the characteristics of local-GAAP reported earnings for firms choosing to cross list in US markets relative to both a matched sample of foreign firms currently not choosing to cross list and a matched sample of US firms. Our evidence suggests that cross-listing firms...

We provide evidence on the characteristics of local-GAAP earnings for firms cross listing on US exchanges relative to a matched sample of foreign firms currently not cross listing in the US to investigate whether US listing is associated with differences in accounting data reported in local...

We study a sample of Continental European firms for changes in the sensitivity of their CEO turnover to their foreign peers' accounting performance around the mandatory adoption of International Financial Reporting Standards (IFRS). We find a post-adoption increase in the use of Relative...

Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP's principal focus is on control (performance measurement and stewardship) and that verifiability and conservatism are critical features of a GAAP shaped by market forces. We recognize the advantage...