How Representative Are Cross-Listed Firms? An Analysis of Firm Performance and Accounting Quality
This article provides evidence on the characteristics of local-GAAP reported earnings for firms choosing to cross list in US markets relative to both a matched sample of foreign firms currently not cross listing in the US and a matched sample of US firms. The goal is to investigate the extent to which self-selection and changes around listing may lead to differences between cross-listing and non-cross-listing firms. The evidence suggests that cross-listing firms differ from other firms in their local markets in terms of earnings performance, the time series properties of earnings and accruals, and the degree of association between accounting data and share prices.