Private benefits and cross-listings in the United States

Benos, Evangelos; Weisbach, Michael S.

doi:10.1016/j.ememar.2004.01.002

Cited by 162 publications

(80 citation statements)

References 34 publications

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“…According to Benos and Weisbach (2004), the most important factor explaining the level of private benefits is the legal environment in which the company operates. In countries with extensive investor protection, private benefits of control are already curbed independent of the accounting standards used (Coffee (2001); Leuz et al (2003)).…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The Impact of Legal and Voluntary Investor Protection on the Early Adoption of International Financial Reporting Standards (IFRS)

Renders

Gaeremynck

2007

De Economist

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Section: Literature Review and Hypothesesmentioning

confidence: 99%

The Impact of Legal and Voluntary Investor Protection on the Early Adoption of International Financial Reporting Standards (IFRS)

Renders

Gaeremynck

2007

De Economist

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“…Firms issuing ADR face different enforcement and institutional incentives -i.e. extra enforcement by American Securities and Exchange Commission (SEC) -tending to present more transparent disclosure (Coffee, 2002), and to improve investor protection (Benos & Weisbach, 2004;Reese & Weisbach, 2002). The impact of country specific factors on the level of earnings management of global players is not clear, since these factors might not be as relevant as for those firms that are only traded in their domestic markets.…”

Section: Ifrs Adoption and Firm-level Incentives: The Role Of Global mentioning

confidence: 99%

International Financial Reporting Standards and Earnings Management in Latin America

Rathke

Santana

Lourenço³

et al. 2016

Rev. adm. contemp.

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ResumoEssa pesquisa analisa o nível de gerenciamento de resultados na América Latina após a adoção das International Financial Reporting Standards (IFRS), em comparação aos países anglo-saxões e europeu-continentais. Ela também analisa o efeito da listagem de ações nos Estados Unidos sobre a comparação do nível de gerenciamento de resultados das empresas latino-americanas com empresas estrangeiras. A literatura sobre gerenciamento de resultados considerando países menos desenvolvidos ainda está em construção, e poucos estudos focam esse tema, especialmente na América Latina, apesar de sua relevância para a economia global. A presente pesquisa preenche essa lacuna por meio do exame do nível de gerenciamento de resultados nos principais países latino-americanos que adotam as IFRS (Brasil e Chile), em comparação com os principais países anglo-saxões com tradição em IFRS (Reino Unido e Austrália), e com as principais economias da Europa Continental (França e Alemanha). Os resultados demonstram que os latino-americanos apresentam um maior nível de gerenciamento de resultados que os anglo-saxões e europeu-continentais, e esse comportamento oportunista se mantém significativo quando apenas global players com listagem de ações nos Estados Unidos são analisados. Logo, mesmo com um conjunto único de padrões contábeis de elevada qualidade (IFRS) e fortes incentivos à divulgação, as características específicas dos países produzem forte influência na forma como as IFRS são implementadas em cada país. Palavras-chave: IFRS; gerenciamento de resultados; América Latina. AbstractThis study analyzes the level of earnings management in Latin America after the adoption of the International Financial Reporting Standards (IFRS) and analyzes the role of cross-listing in the United States. The literature on earnings management in less developed countries is still under construction, and few studies focus on this issue, especially with respect to Latin America, despite its relevant role in the global economy. This paper fills this gap in the literature as it analyzes the level of IFRS earnings management regarding the first and main Latin American countries applying IFRS (Brazil and Chile), when compared to the main Anglo-Saxon countries with IFRS tradition (United Kingdom and Australia), and with the main Continental European economies (France and Germany). The results show that Latin American firms present a higher level of earnings management than Continental European and Anglo-Saxon firms, and this opportunistic behavior remains significant when only global players with cross-listing in the United States are analyzed. Thus, even with a unique set of high quality accounting standards (IFRS) and strong reporting incentives, countries' specific characteristics still play an important role in the way IFRS is implemented in each country.

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“…First, the US market provides a unique experimental setting in which firms from a diverse array of countries access a homogeneous takeover market. That is, each bidder is subjected to the same takeover 3 Benos and Weisbach (2004) and Seigel (2005) provide several examples of extreme asset taking by controlling shareholders. 4 In a cross-border M&A transaction in which a US firm is the target and equity is the acquisition currency, the acquirer will in general be cross-listed on a US stock exchange.…”

Section: Introductionmentioning

confidence: 99%