Abstract

http://ssrn.com/abstract=1841043
 
 

Citations



 


 



Does Eliminating the Form 20-F Reconciliation from IFRS to U.S. GAAP Have Capital Market Consequences?


Yongtae Kim


Santa Clara University - Leavey School of Business

Haidan Li


Santa Clara University - Leavey School of Business

Siqi Li


Santa Clara University - Leavey School of Business

May 13, 2011

Journal of Accounting & Economics (JAE), Forthcoming

Abstract:     
This paper investigates the capital market consequences of the SEC’s decision to eliminate the reconciliation requirement for cross-listed companies following International Financial Reporting Standards (IFRS). We find no evidence that the elimination has a negative impact on firms’ market liquidity or probability of informed trading (PIN). We also find no evidence of a significant impact on cost of equity, analyst forecasts, institutional ownership, stock price efficiency and synchronicity. Moreover, IFRS users do not increase disclosure frequency nor supply the reconciliation voluntarily. Our results do not support the argument that eliminating the reconciliation results in information loss or greater information asymmetry.

Keywords: International Financial Reporting Standards (IFRS), U.S. GAAP, Form 20-F Reconciliation, Cross-listing

JEL Classification: M41, G15, G18

Accepted Paper Series


Not Available For Download

Date posted: May 13, 2011  

Suggested Citation

Kim, Yongtae and Li, Haidan and Li, Siqi, Does Eliminating the Form 20-F Reconciliation from IFRS to U.S. GAAP Have Capital Market Consequences? (May 13, 2011). Journal of Accounting & Economics (JAE), Forthcoming. Available at SSRN: http://ssrn.com/abstract=1841043

Contact Information

Yongtae Kim
Santa Clara University - Leavey School of Business ( email )
500 El Camino Real
Santa Clara, CA California 95053
United States
(408) 554-4667 (Phone)
(408) 554-2331 (Fax)
Haidan Li
Santa Clara University - Leavey School of Business ( email )
500 El Camino Real
Santa Clara, CA California 95053
United States
408-554-5181 (Phone)
Siqi Li (Contact Author)
Santa Clara University - Leavey School of Business ( email )
500 El Camino Real
Santa Clara, CA 95053
United States
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