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Voluntary Accounting Disclosures by U.S.-Listed Asian Companies
Gaurav Kumar,
University Of Arkansas At Little Rock
W. Mark Wilder, University of Mississippi
Morris H. Stocks, University of Mississippi
ABSTRACT. The current study examines the voluntary disclosures provided by U.S.–listed Asian companies in the U.S. Our findings indicate that significantly fewer [greater] voluntary disclosures are provided by U.S.–listed Asian companies from countries which have a strict [less strict] mandatory disclosure regime in their home country. This finding is contrary to the theory developed in Einhorn, 2005. In addition, this study documents that over 80 percent of U.S.–listed Asian companies are voluntarily using “international” standards for their financial statements and thus contributing towards international accounting convergence. However, their choice to use “international” standards is not affected by their proportion of foreign sales or size. An important contribution of this study is the development of a measure for strictness of mandatory disclosure regimes of Asian countries by two alternative methods – expert rankings and by using Adhikari and Tondkar’s (1992) method.
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