Home and foreign host country IFRS adoption and cross-delisting

Kiridaran Kanagaretnam, Xiangting Kong, Hiu Leong Tsang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

This study examines whether and how the mandatory adoption of international financial reporting standards (IFRS) affects a firm’s cross-delisting decision. Using a comprehensive sample of international cross-delistings, we show that mandatory IFRS adoption in the cross-listing host countries of multinational
enterprises (MNEs) increases the delisting propensity of non-IFRS-reporting firms. In contrast, mandatory IFRS adoption in both home and host countries of cross-listing firms decreases the delisting propensity of MNEs in the post-IFRS period. The results of cross-sectional tests further suggest that the increased
cross-delisting propensity for domestic GAAP-reporting firms post-IFRS adoption in foreign host countries is more pronounced for firms with a greater difference between domestic GAAP and IFRS. Overall, our results show the differential effects of IFRS adoption in home/host countries of MNEs on their cross-delisting decisions.
Original languageEnglish
Pages (from-to)1008
Number of pages1033
JournalJournal of International Business Studies
Volume51
Publication statusPublished - 14 Jan 2020

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