Publication Type
Journal Article
Version
publishedVersion
Publication Date
1-2024
Abstract
Using Korean firms that are cross-listed in the US market, this paper investigates whether there are standalone effects of geographic and market proximity of institutional investors on monitoring performance. We find that Korean institutional ownership is negatively associated with earnings management while the US institutional ownership has no impact on earnings management. This suggests that there is the geographic proximity advantage over the market proximity advantage in the emerging markets. Furthermore, we also show that the impact of geographic proximity is stronger for firms with high informational opacity
Keywords
Corporate governance, Cross-listed firms, Earnings management, Geographic proximity, Market proximity
Discipline
Finance | Finance and Financial Management
Publication
Emerging Markets Finance and Trade
Volume
60
Issue
3
First Page
456
Last Page
477
ISSN
1540-496X
Identifier
10.1080/1540496X.2023.2229941
Publisher
Taylor & Francis (Routledge): SSH Titles
Embargo Period
2-26-2024
Citation
CHOI, Changhwan; CHUNG, Chune Young; and SONG, Jun Myung.
Local institutional investors and corporate monitoring: Evidence from cross-listed Korean stocks in the US market. (2024). Emerging Markets Finance and Trade. 60, (3), 456-477.
Available at: https://ink.library.smu.edu.sg/skbi/36
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1080/1540496X.2023.2229941