The anatomy of Holding Foreign Companies Accountable Act (HFCAA): a panacea or a double-edge sword?

Bu, Qingxiu (2021) The anatomy of Holding Foreign Companies Accountable Act (HFCAA): a panacea or a double-edge sword? Capital Markets Law Journal, 16. pp. 1-25. ISSN 1750-7219

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Abstract

Key points:
-Accurate financial statements are critical to investors in making informed decisions and vital to the overall well-being of the US capital market.
-For cross-listed and multi-jurisdictional businesses, the current regulatory frameworks fail to create governance equivalency between foreign and US domestic issuers that are listed in the USA.
-The US Holding Foreign Companies Accountable Act (HFCAA) seeks to level the playing field.
-Companies that use accounting firms which cannot be inspected by the Public Company Accounting Oversight Board for three consecutive years risk being de-listed from US securities exchanges and also becoming subject to a prohibition in over-the-counter trading in their stock.
-Behind the statutory response in HFCAA are intertwined tensions between stakeholders and sovereigns.
-The key to addressing the current imbalances will be to strike a balance between maintaining the US stock markets’ open to high-quality foreign issuers and enabling US investors to have access to reliable financial information.
-It remains uncertain whether the HFCAA will reshape the governance landscape geoeconomically.

Item Type: Article
Schools and Departments: School of Law, Politics and Sociology > Law
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 05 Jul 2021 07:08
Last Modified: 06 Sep 2021 09:15
URI: http://sro.sussex.ac.uk/id/eprint/100150

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