Abstract:This paper investigates whether the U.S. market rewards cross-listed foreign firms and domestic firms differently when they meet or beat earnings expectations (MBE). Using 1,800 matched pairs of foreign firms and domestic firms from year 2005 to 2014, we find that (1) the MBE premium is discounted for foreign firms compared to U.S. domestic firms, (2) although the reward for MBE is discounted for foreign firms, they suffer a similar penalty as domestic firms when they miss expectations, (3) foreign firms from … Show more
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