The Effects of Cross-Border Cooperation on Disclosure Enforcement and Earnings Attributes

53 Pages Posted: 11 Jun 2020 Last revised: 15 Jun 2020

Date Written: May 11, 2020

Abstract

This study tests for changes in U.S.-listed foreign firms’ financial reporting properties and transparency when their home market regulators enter an arrangement that facilitates enforcement cooperation with the Securities and Exchange Commission. This arrangement—the International Organization of Securities Commissions’ Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU)—has explicit disclosure-related provisions. I show that the MMoU is associated with improvements across various measures of accounting properties and transparency. Collectively, the findings help resolve enduring questions about why the earnings quality of U.S.-listed foreign firms diverged from that of U.S. firms during pre-MMoU periods.

Keywords: information sharing, regulatory coordination, enforcement, SEC, cross-list, bonding

JEL Classification: K22, G38, F22, F23, F59, M48

Suggested Citation

Silvers, Roger, The Effects of Cross-Border Cooperation on Disclosure Enforcement and Earnings Attributes (May 11, 2020). Available at SSRN: https://ssrn.com/abstract=3598367 or http://dx.doi.org/10.2139/ssrn.3598367

Roger Silvers (Contact Author)

University of Utah ( email )

1655 E Campus Dr
SLC, UT 01003
United States

HOME PAGE: http://www.rogersilvers.com/

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