Home and foreign host country IFRS adoption and cross-delisting

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. 这项研究调查是否强制采用国际财务报告标准(IFRS)以及该标准如何影响公司的交叉摘牌决定。通过使用国际交叉摘牌的综合样本, 我们表明, 跨国企业(MNE)的交叉挂牌东道国强制采用IFRS会增加非IFRS报告公司的摘牌倾向。相比之下, 交叉上市公司在本国和东道国强制采用IFRS会降低跨国企业在后IFRS时期的退市倾向。横截面测试的结果进一步表明,对于在国内GAAP和IFRS之间有较大差异的公司, 国内GAAP报告公司在外国东道国采用IFRS后的交叉摘牌倾向增加。总体而言, 我们的结果表明, 在跨国企业的母国/东道国采用IFRS对其交叉摘牌决策的影响不同。