Accounting quality and countries institutional characteristics: Evidence from multinational firms

Proceedings of The 3rd International Conference on Advanced Research in Management, Economics and Accounting

Year: 2022

DOI:

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Accounting quality and countries institutional characteristics: Evidence from multinational firms

Nizar Berrim, Imen Ghadhab and Hamza Nizar

ABSTRACT: 

This paper provides an original evidence regarding the dynamics of cross-listing in the United States and accounting quality. Using a sample of non US firms cross-listed in the US, we show that cross-listing improves accounting quality. We also find that the positive impact of cross-listing on accounting quality is stronger for firms from countries with weaker institutions. Finally, we find that accounting quality following cross-listing in the United States translates into better investment efficiency. Our results are robust to endogeneity concern.

keywords: Cross-listing, Accounting quality, Bonding theory.