2003/01/01 by Tarun Khanna, Krishna G. Palepu, Krishna Palepu +1 · 1 citation
Business, Management and Accounting · #Auditing, Earnings Management, Governance #Corporate Finance and Governance #Political Influence and Corporate Strategies
paper · pdf · doi:10.2139/ssrn.408621
crossref issued 2003/01/01 · crossref published 2003/01/01 · openalex publication_date 2003/01/01 · crossref created 2005/07/07 · openalex created_date 2025/10/10 · crossref deposited 2026/07/28 · crossref indexed 2026/07/28 · openalex updated_date 2026/08/02
We analyze the disclosure practices of companies as a function of their interaction with the U.S. markets for a group of 794 firms from 24 countries in Asia-Pacific and Europe. Our analysis uses the Transparency and Disclosure scores developed recently by Standard & Poor's. These scores rate the disclosure of companies from around the world using U.S. disclosure practices as an implicit benchmark. Results show a positive association between these disclosure scores and a variety of market interaction measures, including US Listing, US investment flows, export to and operations in the US. Trade with US, however, has an insignificant relationship with the disclosure scores. Our empirical analysis controls for the previously documented association between disclosure and firm size, performance, and country legal origin. Our results are broadly consistent with the hypothesis that cross-border economic interactions are associated with similarities in disclosure and governance practices.