The Effects of a U.S. Approach to Enforcement: ...
Document type :
Article dans une revue scientifique
Title :
The Effects of a U.S. Approach to Enforcement: Evidence from China
Author(s) :
Duan, Tinghua [Auteur]
Lille économie management - UMR 9221 [LEM]
Li, Kai [Auteur]
Rogo, Rafael [Auteur]
Zhang, Ray [Auteur]
Lille économie management - UMR 9221 [LEM]
Li, Kai [Auteur]
Rogo, Rafael [Auteur]
Zhang, Ray [Auteur]
Journal title :
Journal of Financial and Quantitative Analysis
Publisher :
Cambridge University Press (CUP)
Publication date :
2022-03-05
ISSN :
0022-1090
HAL domain(s) :
Sciences de l'Homme et Société/Gestion et management
English abstract : [en]
We examine the effects of implementing a U.S. approach to the enforcement of mandatory disclosure in China. Using a hand-collected sample of comment letters (CLs) issued by the Shanghai Stock Exchange over the period ...
Show more >We examine the effects of implementing a U.S. approach to the enforcement of mandatory disclosure in China. Using a hand-collected sample of comment letters (CLs) issued by the Shanghai Stock Exchange over the period 2013-2018, we show that stock price reactions to CL receipts and replies are negative and significant. Using textual analysis to match issues raised by regulators to targeted firms’ changes in disclosure, we show that these firms address CL issues point by point, but do not experience significant improvements in their information environments. Our paper highlights the importance of incentives rather than regulation/enforcement in reducing information asymmetry.Show less >
Show more >We examine the effects of implementing a U.S. approach to the enforcement of mandatory disclosure in China. Using a hand-collected sample of comment letters (CLs) issued by the Shanghai Stock Exchange over the period 2013-2018, we show that stock price reactions to CL receipts and replies are negative and significant. Using textual analysis to match issues raised by regulators to targeted firms’ changes in disclosure, we show that these firms address CL issues point by point, but do not experience significant improvements in their information environments. Our paper highlights the importance of incentives rather than regulation/enforcement in reducing information asymmetry.Show less >
Language :
Anglais
Peer reviewed article :
Oui
Audience :
Internationale
Popular science :
Non
Collections :
Source :