@article{5b8db97f145a4035b5e81a9ace49a806,
title = "Does the Form 20-F reconciliation help ensure the financial reporting quality of cross-listed IFRS firms? A comparison with cross-listed non-IFRS firms",
abstract = "This paper investigates whether financial reporting quality improves or deteriorates after the US Securities and Exchange Commission (SEC) decided to eliminate the Form 20-F reconciliation requirement for foreign cross-listed firms following International Financial Reporting Standards (IFRS). Using a difference-in-differences research design, we find that cross-listed IFRS firms are less likely to restate financial statements after the SEC revoked their reconciliation requirement, as compared to cross-listed non-IFRS firms that still need to prepare the reconciliation. Moreover, such a reduction in the occurrence of financial restatements is more prominent when cross-listed IFRS firms engage global industry-specialist auditors and originate from common law countries. Together, this paper lends support to the elimination of the reconciliation requirement for cross-listed IFRS firms and highlights the important roles of auditors and the legal environment in shaping financial reporting quality.",
author = "Lin, {Yi Hung} and Huang, {Hua Wei} and Mai Dao and Huang, {Ting Chiao}",
note = "Funding Information: We are grateful for the helpful comments from Ling-Ching Chan, Jeng-Fang Chen, Chih-Chen Lee, Stephen W. Lin, Hsiao-Wen Wang, and David A. Wood. This paper has also benefitted from comments of the participants at the 2018 Annual Conference of British Accounting & Finance Association, the 2017 Annual Congress of European Accounting Association, the 2017 International Conference of the Journal of International Accounting Research, the 2017 Annual Conference of Accounting & Finance Association of Australia and New Zealand, the 2013 Annual Meeting of American Accounting Association, and the 2013 Current Accounting Theory and Practice Conference (Taiwan). Hua-Wei Huang gratefully acknowledges the financial support of the Ministry of Science and Technology, Taiwan, ROC (Project No. MOST 103-2410-H-006-026-MY2). Special thanks go to Divesh Sharma (the Editor) and anonymous reviewers for their invaluable suggestions to this paper. Funding Information: We are grateful for the helpful comments from Ling‐Ching Chan, Jeng‐Fang Chen, Chih‐Chen Lee, Stephen W. Lin, Hsiao‐Wen Wang, and David A. Wood. This paper has also benefitted from comments of the participants at the 2018 Annual Conference of British Accounting & Finance Association, the 2017 Annual Congress of European Accounting Association, the 2017 International Conference of the Journal of International Accounting Research, the 2017 Annual Conference of Accounting & Finance Association of Australia and New Zealand, the 2013 Annual Meeting of American Accounting Association, and the 2013 Current Accounting Theory and Practice Conference (Taiwan). Hua‐Wei Huang gratefully acknowledges the financial support of the Ministry of Science and Technology, Taiwan, ROC (Project No. MOST 103‐2410‐H‐006‐026‐MY2). Special thanks go to Divesh Sharma (the Editor) and anonymous reviewers for their invaluable suggestions to this paper. Publisher Copyright: {\textcopyright} 2021 John Wiley & Sons Ltd",
year = "2021",
month = jul,
doi = "10.1111/ijau.12228",
language = "English",
volume = "25",
pages = "442--474",
journal = "International Journal of Auditing",
issn = "1090-6738",
publisher = "John Wiley and Sons Ltd",
number = "2",
}