Disclosure and Crosslisting: Evidence from AsiaPacific Firms

Abstract

The purpose of this paper is to examine whether both country disclosure environment and firmlevel disclosures are associated with crosslisting in the USA or London or otherwise. the authors test the association using a sample of AsiaPacific firms covered in the Standard and Poor's, 2001/2002 disclosure survey, capturing the countrylevel disclosure using the Center for International Financial Analysis and Research (CIFAR) score. the firmlevel disclosure is measured using the S&P disclosure score. the authors conduct a logistic regression analysis and a twostage least squares analysis to examine whether the outcome, crosslisting or not, is associated with the country disclosure environment and firmlevel disclosures. the authors find that AsiaPacific firms from weak disclosure environments and having higher firmlevel disclosure scores are more likely to seek listing in the USA. Further, the paper provides initial evidence that these AsiaPacific firms are as likely to seek listing in London as in the USA. No significant difference was found in S&P scores between US and London crosslistings after controlling for the effects of other variables. This suggests that firms that crosslist in London present similar disclosure levels to firms that crosslist in the USA. the paper's findings contribute to the crosslisting literature on disclosure by showing that the interaction between firmlevel disclosure and countrylevel disclosure has an impact on whether a firm crosslists in the USA/London or not. the authors' comparison of US crosslistings versus London crosslistings provides the first evidence that disclosures of US and London crosslistings are not significantly different. © 2012, Emerald Group Publishing Limited

Department(s)

Business and Information Technology

Keywords and Phrases

AsiaPacific; Bonding; Crosslisting; Disclosure; Disclosure environment; Disclosure level; Finance; Investor protection; Stock exchanges

International Standard Serial Number (ISSN)

1758-9037; 1834-7649

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2024 Emerald, All rights reserved.

Publication Date

24 Feb 2012

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