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

Additional URL

https://doi.org/10.1080/1540496X.2023.2229941

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