• Overseas Listing and Accounting Conservatism

Abstract

The paper evaluates the impact of overseas listing on accounting conservatism of financial statements, as well as considers whether the effects of overseas listing tools and areas of distribution impact on the influence of overseas listing on accounting conservatism. Using firms’ first overseas listing as the standard, listed firms who implemented overseas listing in 1992-2011 were selected as sample. The empirical results indicate that the restraints and demands placed on issuing firms by overseas market increases the overseas listing firms’ information disclosure level, leading to lower level of accounting conservatism. In addition, overseas listing tools primarily include issuance of Euro convertible bonds and depository receipts. This study therefore addresses the variation in the impact of different listing tools on accounting conservatism. Finally, different listing areas are investigated to demonstrate that listing area impact on the influence of overseas listing on accounting conservatism.

Keywords: Overseas Listing, Accounting Conservatism, Euro Convertible Bond, Depositary