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Earnings conservatism, litigation, and contracting: the case of cross-listed firms

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Earnings conservatism, litigation, and contracting: the case of cross-listed firms. / Huijgen, C; Lubberink, Martien.
In: Journal of Business Finance and Accounting, Vol. 32, No. 7-8, 2005, p. 1275-1309.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Huijgen, C & Lubberink, M 2005, 'Earnings conservatism, litigation, and contracting: the case of cross-listed firms', Journal of Business Finance and Accounting, vol. 32, no. 7-8, pp. 1275-1309. https://doi.org/10.1111/j.0306-686X.2005.00629.x

APA

Huijgen, C., & Lubberink, M. (2005). Earnings conservatism, litigation, and contracting: the case of cross-listed firms. Journal of Business Finance and Accounting, 32(7-8), 1275-1309. https://doi.org/10.1111/j.0306-686X.2005.00629.x

Vancouver

Huijgen C, Lubberink M. Earnings conservatism, litigation, and contracting: the case of cross-listed firms. Journal of Business Finance and Accounting. 2005;32(7-8):1275-1309. doi: 10.1111/j.0306-686X.2005.00629.x

Author

Huijgen, C ; Lubberink, Martien. / Earnings conservatism, litigation, and contracting: the case of cross-listed firms. In: Journal of Business Finance and Accounting. 2005 ; Vol. 32, No. 7-8. pp. 1275-1309.

Bibtex

@article{6c6f403141e54f87bdb2fe3dd88ae77d,
title = "Earnings conservatism, litigation, and contracting: the case of cross-listed firms",
abstract = "We compare earnings conservatism of UK companies cross-listed in the US to that of UK companies without a US-listing. We expect that conservatism will be more pronounced for cross-listed firms than for firms with a UK listing only, because the cross-listed firms face a stricter enforcement regime. Furthermore, cross-listed firms may use a listing on a US exchange to signal high-quality reporting to investors. Using a matched-pairs research design, we find that earnings of UK cross-listed firms are significantly more conservative than earnings of UK firms without a US listing. Moreover, cross listed firms display particularly high levels of conservatism during the early years of their cross-listing. This indicates that firms use earnings conservatism to commit to highly demanding reporting requirements and in doing so communicate a perception of investor care.",
author = "C Huijgen and Martien Lubberink",
year = "2005",
doi = "10.1111/j.0306-686X.2005.00629.x",
language = "English",
volume = "32",
pages = "1275--1309",
journal = "Journal of Business Finance and Accounting",
issn = "0306-686X",
publisher = "Wiley-Blackwell",
number = "7-8",

}

RIS

TY - JOUR

T1 - Earnings conservatism, litigation, and contracting: the case of cross-listed firms

AU - Huijgen, C

AU - Lubberink, Martien

PY - 2005

Y1 - 2005

N2 - We compare earnings conservatism of UK companies cross-listed in the US to that of UK companies without a US-listing. We expect that conservatism will be more pronounced for cross-listed firms than for firms with a UK listing only, because the cross-listed firms face a stricter enforcement regime. Furthermore, cross-listed firms may use a listing on a US exchange to signal high-quality reporting to investors. Using a matched-pairs research design, we find that earnings of UK cross-listed firms are significantly more conservative than earnings of UK firms without a US listing. Moreover, cross listed firms display particularly high levels of conservatism during the early years of their cross-listing. This indicates that firms use earnings conservatism to commit to highly demanding reporting requirements and in doing so communicate a perception of investor care.

AB - We compare earnings conservatism of UK companies cross-listed in the US to that of UK companies without a US-listing. We expect that conservatism will be more pronounced for cross-listed firms than for firms with a UK listing only, because the cross-listed firms face a stricter enforcement regime. Furthermore, cross-listed firms may use a listing on a US exchange to signal high-quality reporting to investors. Using a matched-pairs research design, we find that earnings of UK cross-listed firms are significantly more conservative than earnings of UK firms without a US listing. Moreover, cross listed firms display particularly high levels of conservatism during the early years of their cross-listing. This indicates that firms use earnings conservatism to commit to highly demanding reporting requirements and in doing so communicate a perception of investor care.

U2 - 10.1111/j.0306-686X.2005.00629.x

DO - 10.1111/j.0306-686X.2005.00629.x

M3 - Journal article

VL - 32

SP - 1275

EP - 1309

JO - Journal of Business Finance and Accounting

JF - Journal of Business Finance and Accounting

SN - 0306-686X

IS - 7-8

ER -