Delayed Foreign Filings and Investor Attention: Evidence from Form 20-F Reconciliation Elimination

dc.contributor.author Pinto, Jedson
dc.contributor.author Sul, Edward
dc.date.accessioned 2019-12-06T18:30:16Z
dc.date.available 2019-12-06T18:30:16Z
dc.date.issued 2019-08-20
dc.description.abstract We argue that the 2007 SEC elimination of the U.S. GAAP reconciliation requirement for IFRS-reporting cross-listed firms increased disclosure redundancy across home country and U.S. ADR markets, affecting U.S. market investors' information acquisition behavior. First, we document a decreased yet significant delay between information release dates in the two countries following reconciliation elimination. Furthermore, greater delay in IFRS firms' unreconciled Form 20-F filings decreases 20-F download activity and reverses potential liquidity benefits of timely disclosure. We also document an increase in return co-movement across the home country and the U.S., suggesting increased market integration. Furthermore, there are increased return and volume reactions to home country earnings announcements in the ADR market post-SEC deregulation. Our results bring novel insights regarding the important implications of timeliness of Form 20-F filings in conjunction with the reconciliation elimination's effects on information integration across the two markets on investor information acquisition behavior.
dc.identifier.uri http://hdl.handle.net/10125/64818
dc.subject Cross Listing
dc.subject Disclosure
dc.subject Timeliness
dc.subject Investor Attention
dc.subject Market Integration
dc.subject IFRS
dc.title Delayed Foreign Filings and Investor Attention: Evidence from Form 20-F Reconciliation Elimination
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