Does Foreign Company's Shortcut to Wall Street Cut Short their Financial Reporting Quality? Evidence from Chinese Reverse Mergers
Publication Type
Conference Paper
Publication Date
7-2012
Abstract
Compared with other companies listed on the major stock exchanges, Chinese Reverse Merger (CRM) companies suffer inferior financial reporting quality and are more likely to restate their financial statements. Subsequent tests suggest that the financial reporting quality of the US-listed Chinese companies may correlate with the listing methods they choose. Lastly, we explore potential regulatory vehicles that can be used to improve the financial reporting quality of US-listed Chinese companies in the light of certain transaction and firm characteristics. We find evidence consistent with large auditors and the seasoning requirement help improve the financial reporting quality of CRM companies.
Discipline
Accounting | Corporate Finance
Research Areas
Financial Performance Analysis
Publication
Pacific Basin Finance, Economics, Accounting, and Management Conference
City or Country
New Jersey, USA
Citation
CHEN, Kun-chih; CHENG, Qiang; Chou Lin, Ying; Chen Lin, Yu; and Xin, Xiao.
Does Foreign Company's Shortcut to Wall Street Cut Short their Financial Reporting Quality? Evidence from Chinese Reverse Mergers. (2012). Pacific Basin Finance, Economics, Accounting, and Management Conference.
Available at: https://ink.library.smu.edu.sg/soa_research/942