Earnings Conservatism, Litigation and Contracting: The Case of Cross‐Listed Firms
比较英国交叉上市公司与非交叉上市公司的盈余保守主义，发现交叉上市公司因面临更严格的执法环境而盈余更保守，尤其在上市初期，以此承诺高要求报告并传递投资者关怀。
Abstract: We compare earnings conservatism of UK companies cross‐listed in the US to that of UK companies without a US‐listing. We expect that conservatism will be more pronounced for cross‐listed firms than for firms with a UK listing only, because the cross‐listed firms face a stricter enforcement regime. Furthermore, cross‐listed firms may use a listing on a US exchange to signal high‐quality reporting to investors. Using a matched‐pairs research design, we find that earnings of UK cross‐listed firms are significantly more conservative than earnings of UK firms without a US listing. Moreover, cross listed firms display particularly high levels of conservatism during the early years of their cross‐listing. This indicates that firms use earnings conservatism to commit to highly demanding reporting requirements and in doing so communicate a perception of investor care.