ADRs, Analysts, and Accuracy: Does Cross Listing in the United States Improve a Firm's Information Environment and Increase Market Value?
This paper investigates the relation between cross listing in the United States and the information environment of non-U.S. firms. We find that firms that cross list on U.S. exchanges have greater analyst coverage and increased forecast accuracy than firms that are not cross listed. A time-series an...
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| Veröffentlicht in: | Journal of accounting research 2003-05, Vol.41 (2), p.317-345 |
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| container_title | Journal of accounting research |
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| creator | Lang, Mark H. Lins, Karl V. Miller, Darius P. |
| description | This paper investigates the relation between cross listing in the United States and the information environment of non-U.S. firms. We find that firms that cross list on U.S. exchanges have greater analyst coverage and increased forecast accuracy than firms that are not cross listed. A time-series analysis shows that a change in analyst coverage and forecast accuracy occurs around cross listing. We also document that firms that have more analyst coverage and higher forecast accuracy have higher valuations. Furthermore, the change in firm value around cross listing is correlated with changes in analyst following and forecast accuracy, suggesting that cross listing enhances firm value through its effect on the firm's information environment. Our findings support the hypothesis that cross-listed firms have better information environments, which are associated with higher market valuations. |
| doi_str_mv | 10.1111/1475-679X.00106 |
| format | Article |
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Our findings support the hypothesis that cross-listed firms have better information environments, which are associated with higher market valuations.</description><subject>Analytical estimating</subject><subject>Analytical forecasting</subject><subject>Business structures</subject><subject>Capital costs</subject><subject>Earnings forecasting</subject><subject>Estimate reliability</subject><subject>Forecasting models</subject><subject>Investors</subject><subject>Modeling</subject><subject>Statistical forecasts</subject><issn>0021-8456</issn><issn>1475-679X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2003</creationdate><recordtype>article</recordtype><sourceid>X2L</sourceid><recordid>eNqFUUFv0zAUjhCTKBtnLhx840I2O7bThguK2m10Kp1Y2eBmOc4zc0mcyvY68hP41zgN6hVLn9_Te-_7bH9OkrcEn5O4Lgib8jSfFj_OMSY4f5FMjpWXyQTjjKQzxvNXyWvvtxjjglMySf6Uizv_AZVWNr0PMZO2RqVST06q_iNadODR3HXeo5XxwdifyFgUHgHdWxOgRpsgQxxZtjvX7QFJdGVc-z4WrO5cK4PpLLq0e-M624INB_mlVQ6kB_RFul8Q0INsnuDTWXKiZePhzb94mtxfXX6bf05Xt9fLeblKFec0T0lRcKjkDOuMF0VWTLOccVZrWamaVZgRTQnWnOtcc8izumKsrjivGcd4xhWnp8nFqKuGZznQYudMK10vCBaDk2LwTQy-iYOTkXEzMhzsQB3Hq0ZuO-nAi72gkpG49REZxjQGM6QRuwhKpoIyLh5DG8XYKPZsGuj_d7a4uS3vxju8G2lbHzp3pFHOMnZop2M7fhL8Prajv1GMRsnv62uxma8evq43C7GmfwFZJKec</recordid><startdate>200305</startdate><enddate>200305</enddate><creator>Lang, Mark H.</creator><creator>Lins, Karl V.</creator><creator>Miller, Darius P.</creator><general>Blackwell Publishing Inc</general><general>The Institute of Professional Accounting, Graduate School of Business, University of Chicago</general><general>Wiley Blackwell</general><scope>BSCLL</scope><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope></search><sort><creationdate>200305</creationdate><title>ADRs, Analysts, and Accuracy: Does Cross Listing in the United States Improve a Firm's Information Environment and Increase Market Value?</title><author>Lang, Mark H. ; Lins, Karl V. ; Miller, Darius P.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c5536-1995eba80f259929726454dfabcd4b041f310f55f6f5e62db44db55d450085c53</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2003</creationdate><topic>Analytical estimating</topic><topic>Analytical forecasting</topic><topic>Business structures</topic><topic>Capital costs</topic><topic>Earnings forecasting</topic><topic>Estimate reliability</topic><topic>Forecasting models</topic><topic>Investors</topic><topic>Modeling</topic><topic>Statistical forecasts</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Lang, Mark H.</creatorcontrib><creatorcontrib>Lins, Karl V.</creatorcontrib><creatorcontrib>Miller, Darius P.</creatorcontrib><collection>Istex</collection><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><jtitle>Journal of accounting research</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Lang, Mark H.</au><au>Lins, Karl V.</au><au>Miller, Darius P.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>ADRs, Analysts, and Accuracy: Does Cross Listing in the United States Improve a Firm's Information Environment and Increase Market Value?</atitle><jtitle>Journal of accounting research</jtitle><date>2003-05</date><risdate>2003</risdate><volume>41</volume><issue>2</issue><spage>317</spage><epage>345</epage><pages>317-345</pages><issn>0021-8456</issn><eissn>1475-679X</eissn><abstract>This paper investigates the relation between cross listing in the United States and the information environment of non-U.S. firms. 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| ispartof | Journal of accounting research, 2003-05, Vol.41 (2), p.317-345 |
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| source | Jstor Complete Legacy; RePEc; Wiley Online Library Journals Frontfile Complete |
| subjects | Analytical estimating Analytical forecasting Business structures Capital costs Earnings forecasting Estimate reliability Forecasting models Investors Modeling Statistical forecasts |
| title | ADRs, Analysts, and Accuracy: Does Cross Listing in the United States Improve a Firm's Information Environment and Increase Market Value? |
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