Regulatory Cooperation, Enforcement, and Accounting Restatements of US‐Listed Foreign Firms
研究发现，美国上市外国公司少报会计重述，但母国加入跨境执法合作网络后，它们更可能如实报告错误，且重述与盈余管理的关联更强、市场反应更温和。
ABSTRACT Srinivasan et al. document evidence that foreign firms listed in the United States report fewer accounting restatements than US domestic firms. Using a regulatory change and a novel statistical method, we provide evidence suggesting that the evidence is driven by foreign firms systematically underreporting misstatements. Specifically, after their home countries join the Multilateral Memorandum of Understanding (MMoU) network that facilitates cross‐border regulatory enforcement, US‐listed foreign firms are less likely to commit misstatements but are more likely to report their misstatements. Furthermore, foreign firms’ restatements have a stronger association with measures of earnings management and receive less negative market reactions in the post‐MMoU period. The results suggest that stronger regulatory enforcement deters underreporting of restatements and makes foreign firms’ financial reporting more similar to that of US domestic firms.