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The impact of national culture on the synchronicity of cross-listed firms

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  • Abdallah, Abed Al-Nasser
  • Abdallah, Wissam
  • Saad, Mohsen

Abstract

We examine the impact of national culture on the relationship between International Financial Reporting Standards (IFRS) adoption and stock price synchronicity for a sample of cross-listed firms in the U.S. We find that synchronicity decreases when the cross-listed firms reconcile their accounts from IFRS to U.S. GAAP. The synchronicity reduction is more pronounced for firms from secretive societies (i.e., low individualistic and masculine cultures, and high uncertainty avoidance and power distance cultures). Our results reveal that IFRS adoption improves firm-specific information, and national culture affects such improvement.

Suggested Citation

  • Abdallah, Abed Al-Nasser & Abdallah, Wissam & Saad, Mohsen, 2022. "The impact of national culture on the synchronicity of cross-listed firms," Finance Research Letters, Elsevier, vol. 46(PA).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321003275
    DOI: 10.1016/j.frl.2021.102293
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    References listed on IDEAS

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    More about this item

    Keywords

    Synchronicity; Culture; Reconciliation; IFRS;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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