The Determinants of Voluntary Disclosures: Evidence from U.S. Cross-Listed Australasian Firms

• In Event: Concurrent Session 3.3: IFRS

Abstract

This paper examines whether U.S. listing has an impact on voluntary disclosure levels of foreign firms. Specifically, by using a forward-looking information disclosure index, this paper investigates the determinants of voluntary disclosure levels for U.S. cross-listed Australian, Chinese, Indian and Japanese firms. There are four main findings. First, the extent of voluntary disclosure of U.S. cross-listed foreign firms, either traded on major U.S. stock exchanges or OTC-markets, is greater than non-U.S. cross-listed foreign firms. Second, the extent of voluntary disclosure of U.S. cross-listed foreign firms is positively associated with the strength of their home country’s legal enforcement. Third, financial institution-held firms show a lower voluntary disclosure level than widely-held firms. Last, U.S. domestic firms are less likely to voluntarily disclose forward-looking information than U.S. cross-listed foreign firms.

Authors

• Richard Morris, The University of New South Wales

• Helen Kang, The University of New South Wales

• Aileen Yuxin Lin, The University of New South Wales