Ongoing SEC Disclosures by Foreign Firms

68 Pages Posted: 6 Jul 2015 Last revised: 4 Jul 2019

See all articles by Audra L. Boone

Audra L. Boone

Texas Christian University - M.J. Neeley School of Business

Kathryn M. Schumann

James Madison University

Joshua T. White

Vanderbilt University - Finance

Date Written: July 1, 2019

Abstract

We study how home-market reporting requirements and listing choices associate with ongoing SEC disclosures by foreign firms and the investor response. The SEC defers material event and interim financial disclosure obligations to foreign firms’ home market regulator or exchange. We find a growing number of foreign firms incorporate in disclosure havens and have little or no ongoing disclosure obligations. These firms supply fewer disclosures but experience greater investor interest and market response around each filing. There is little evidence that the SEC substitutes for lower information flow with higher monitoring. Our results indicate that the SEC’s one-size-fits-all approach to foreign firm disclosure has led to increasing disparity in information flow, despite the strong demand for and reaction to disclosures by firms from weaker regimes.

Keywords: Information Environment, Disclosure, Foreign Firms, Cross-Listing, SEC Form 6-K

JEL Classification: G15, G34, G38

Suggested Citation

Boone, Audra and Schumann, Kathryn M. and White, Joshua T., Ongoing SEC Disclosures by Foreign Firms (July 1, 2019). Available at SSRN: https://ssrn.com/abstract=2626969 or http://dx.doi.org/10.2139/ssrn.2626969

Audra Boone (Contact Author)

Texas Christian University - M.J. Neeley School of Business ( email )

Fort Worth, TX 76129
United States

Kathryn M. Schumann

James Madison University ( email )

Harrisonburg, VA 22807
United States

Joshua T. White

Vanderbilt University - Finance ( email )

401 21st Avenue South
Nashville, TN 37203
United States

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