Foreign Institutional Ownership and the Global Convergence of Financial Reporting Practices
研究发现美国机构投资者持股会提高新兴市场企业与其美国同行之间的会计可比性，这种趋同部分通过企业更换为四大审计师实现，并改善了外国分析师的预测质量。
ABSTRACT This paper investigates whether foreign institutional investors affect the global convergence of financial reporting practices. Using several measures of reporting convergence, we show that U.S. institutional ownership is positively associated with subsequent changes in emerging market firms’ accounting comparability to their U.S. industry peers. We identify this association using an instrumental variable approach that exploits exogenous variation in U.S. institutional investment generated by the JGTRRA Act of 2003. Further, we provide evidence of a specific mechanism—the switch to a Big Four audit firm—through which U.S. institutional investors affect reporting convergence. Finally, we show that, for emerging market firms, an increase in comparability to U.S. firms is associated with an improvement in the properties of foreign analysts’ forecasts.