Abdioglu, N, Bamiatzi, V, Cavusgil, ST et al. (2 more authors) (2015) Information Asymmetry, Disclosure and Foreign Institutional Investment: An Empirical Investigation of the Impact of the Sarbanes-Oxley Act. International Business Review, 24 (5). 902 - 915. ISSN 0969-5931
Abstract
Do 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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 Elsevier Ltd. This is an author produced version of a paper published in International Business Review. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Active and passive institutional investors; Information asymmetry; Institutional foreign investors; Sarbanes-Oxley Act |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 24 Jun 2015 15:55 |
Last Modified: | 01 Nov 2016 22:20 |
Published Version: | http://dx.doi.org/10.1016/j.ibusrev.2015.04.001 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.ibusrev.2015.04.001 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:87358 |