Abstract

https://ssrn.com/abstract=484002
 


 



Disclosure Practices of Foreign Companies Interacting with U.S. Markets


Tarun Khanna


Harvard University - Strategy Unit

Krishna Palepu


Harvard University - Harvard Business School; Harvard University - David Rockefeller Center for Latin American Research; Harvard Business Review; NBER; International Academy of Management

Suraj Srinivasan


Harvard Business School


Journal of Accounting Research, Vol. 42, No. 2, May 2004

Abstract:     
We analyze the disclosure practices of companies as a function of their interaction with U.S. markets for a group of 794 firms from 24 countries in the Asia-Pacific and Europe. Our analysis uses the Transparency and Disclosure scores developed recently by Standard & Poor's. These scores rate the disclosure of companies from around the world using U.S. disclosure practices as an implicit benchmark. Results show a positive association between these disclosure scores and a variety of market interaction measures, including U.S. listing, U.S. investment flows, exports to, and operations in the United States. Trade with the United States at the country level, however, has an insignificant relationship with the disclosure scores. Our empirical analysis controls for the previously documented association between disclosure and firm size, performance, and country legal origin. Our results are broadly consistent with the hypothesis that cross-border economic interactions are associated with similarities in disclosure and governance practices.

Keywords: Disclosure, globalization, convergence, corporate governance, accounting

JEL Classification: F16, F20, G15, G34, M41, M45, M47


Not Available For Download

Date posted: August 9, 2004  

Suggested Citation

Khanna, Tarun and Palepu, Krishna and Srinivasan, Suraj, Disclosure Practices of Foreign Companies Interacting with U.S. Markets. Journal of Accounting Research, Vol. 42, No. 2, May 2004. Available at SSRN: https://ssrn.com/abstract=484002

Contact Information

Tarun Khanna (Contact Author)
Harvard University - Strategy Unit ( email )
Harvard Business School
Boston, MA 02163
United States
617-495-6038 (Phone)
617-495-0355 (Fax)
Krishna Palepu
Harvard University - Harvard Business School ( email )
Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-495-6759 (Phone)
617-496-7363 (Fax)
HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=pub&facId=6527

Harvard University - David Rockefeller Center for Latin American Research ( email )
1730 Cambridge St.
Cambridge, MA 02138
United States
HOME PAGE: http://www.drclas.harvard.edu/faculty/directory/professors/view/150
Harvard Business Review ( email )
Boston, MA
United States
HOME PAGE: http://hbr.org/authors/palepu
NBER ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
HOME PAGE: http://www.nber.org/people/krishna_palepu
International Academy of Management ( email )
Avenida Pearson 21
Barcelona, 08034
Spain
HOME PAGE: http://theiam.ws/?person=palepu-krishna
Suraj Srinivasan
Harvard Business School ( email )
Soldiers Field
Boston, MA 02163
United States
HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=pub&facId=10700
Feedback to SSRN


Paper statistics
Abstract Views: 1,348