__smbhome.uscs.susx.ac.uk_tjk30_Documents_Abdioglu et al 2015 - Information Asymmetry, Disclosure and Foreign Institutional Investment.pdf (580.62 kB)
Information asymmetry, disclosure and foreign institutional investment: an empirical investigation of the impact of the Sarbanes-Oxley Act
journal contribution
posted on 2023-06-07, 06:49 authored by Nida Abdioglu, Vasiliki BamiatziVasiliki Bamiatzi, S Tamer Cavusgil, Arif Khurshed, Konstantinos StathopoulosDo foreign institutional investors (FII) regard the introduction of rigorous disclosure requirements as a major incentive to invest in U.S. equities? We investigate the role of information asymmetry and the impact of firm-level disclosure on FII decisions. We use a unique context for analysis -- the enactment of the Sarbanes-Oxley Act (SOX), and find that foreign institutional investors increase their equity holdings in U.S. listed firms following the passage of SOX. The increase in U.S. equity holdings is largely accounted by passive, non-monitoring FII, who have the most to gain from the SOX-led reduction in the value of private information.
History
Publication status
- Published
File Version
- Accepted version
Journal
International Business ReviewISSN
0969-5931Publisher
ElsevierExternal DOI
Issue
5Volume
24Page range
902-915Department affiliated with
- Business and Management Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2019-10-22First Open Access (FOA) Date
2019-10-28First Compliant Deposit (FCD) Date
2019-10-28Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC