Journal article

Foreign Stock Listings: Benefits, Costs, and the Accounting Policy Dilemma

Gary Biddle, Shahrokh M Saudagaran

Accounting Horizons | American Accounting Association | Published : 1991


As firms enter foreign markets for customers and capital, accounting practitioners must wrestle with cross-border differences in languages, customs, accounting conventions, and auditing standards. Stock exchanges in the U.S. claim that they are at a competitive disadvantage because stringent U.S. reporting requirements discourage foreign firms from listing here. This study presents evidence on three key questions raised by these developments: (1) What are the benefits and costs to listing on a foreign stock exchange? (2) Tb what extent do accounting disclosure requirements influence foreign listing decisions? (3) What are the accounting policy issues posed by foreign stock exchange Ustings..

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University of Melbourne Researchers