Financial Reporting Quality of Chinese Reverse Merger Firms: The Reverse Merger Effect or the China Effect?

• Main Authors: CHEN, Kun-Chih, CHENG, Qiang, LIN, Ying Chou, LIN, Yu-Chen, XIAO, Xing
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2016
• 主題: reverse mergers; Chinese firms; financial reporting quality; bonding hypothesis; cross-listings; Accounting; Asian Studies; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/1501; https://ink.library.smu.edu.sg/context/soa_research/article/2500/viewcontent/FinancialReportingQualityChineseReverseMergerFirms_2015_pp.pdf
• 機構: Singapore Management University

In this paper, we examine why Chinese reverse merger (RM) firms have lower financial reporting quality than U.S. IPO firms. We find that the financial reporting quality of U.S. RM firms is similar to that of matched U.S. IPO firms, but Chinese RM firms exhibit lower financial reporting quality than...