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Record W4414485015 · doi:10.33423/jabe.v27i5.7852

The Cost of Complying With U.S. GAAP and Cross-Listed Firms’ Valuations

2025· article· en· W4414485015 on OpenAlexvenueno aff
Jing Lin

Bibliographic record

VenueJournal of Applied Business and Economics · 2025
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicFinancial Reporting and Valuation Research
Canadian institutionsnot available
Fundersnot available
KeywordsValuation (finance)Proxy (statistics)Cost of capitalImplicit costCompliance (psychology)Capital marketListing (finance)Affect (linguistics)

Abstract

fetched live from OpenAlex

The study examines the capital market consequences of foreign firms’ cost of complying with U.S. GAAP. It builds upon a prior research that explores the effect of foreign firms’ U.S. GAAP compliance cost on their cross-listing decisions and listing choices (Lin 2011). Two cost constructs established at the firm level, reconciliation and disclosure, are adopted as proxy for firms’ compliance cost. The valuation analyses confirm the existence of cross-listing and exchange-listing premium. Although individual firms’ reconciliation costs play a little role in valuation, disclosure costs are found to negatively affect the value of cross-listed firms, i.e., firms with less disclosure of accounting information than what U.S. rules require, thus incurring higher disclosure costs, are valued less by the market. This result holds even after the strength of home country disclosure regime is considered. This study extends prior research by investigating the role of firm-specific compliance costs on valuation and provides new evidence on the source of the cross-listing premium.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.606
Threshold uncertainty score0.368

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.035
GPT teacher head0.291
Teacher spread0.256 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2025
Admission routes1
Has abstractyes

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