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

Yi Hung Lin, Hua Wei Huang, Mai Dao, Ting Chiao Huang

研究成果: Article同行評審

摘要

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.

原文English
頁(從 - 到)442-474
頁數33
期刊International Journal of Auditing
25
發行號2
DOIs
出版狀態Accepted/In press - 2021

All Science Journal Classification (ASJC) codes

  • Accounting
  • Economics, Econometrics and Finance(all)

指紋 深入研究「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」主題。共同形成了獨特的指紋。

引用此