本研究探討至美國第二上市(ADR)企業之財務報導品質是否會因為受更嚴謹的法規管制所影響。為了排除不可控制的國家背景既定影響，選擇投資環境與美國同樣具高投資者保護的英國(已開發國家)及台灣(開發中國家)為樣本。研究結果顯示英國有ADR之企業相較於沒有ADR之企業在跨國上市前，較不會從事盈餘管理。而台灣有ADR之企業於跨國上市後持續改善財務報表品質，因此相較於跨國上市前，較不會從事盈餘管理。而英國有ADR之企業在跨國上市後相較於跨國上市前，並沒有顯著差異。此結果顯示當開發中國家之企業受到另一嚴格的監理機關所監督時，較不會從事盈餘管理。在跨國上市後與美國企業及沒有ADR企業之比較結果顯示，英國ADR企業相較於美國企業及沒有ADR之企業有較高的盈餘波動。而台灣ADR企業相較於美國企業及沒有ADR之企業有較平穩之盈餘。以上結果顯示雖然ADR企業都受到美國監理機關監督，但其財務報表品質還是會受到本國環境影響，因此英國ADR企業及台灣ADR企業在跨國上市後相較於美國企業卻有不同之財務報表品質。

This paper examines how cross-listing in highly developed markets with stringent securities laws shape firms’ incentives to report earnings which reflect a firm’s underlying performance. By selecting firms from countries of U.K.(developed) and Taiwan(emerging), with strong investor protection, this study results that UK cross-listed firms show relatively less evidence of earnings management comparing to non-cross-listed firm in the pre-listing period. Taiwan cross-listed firms continuously improve their reporting system by showing lesser evidence of manipulating earnings in the analysis between pre and post-listing period. However, UK CL firms’ behaviour of reporting earnings in the post-listing period remains unchanged in the comparison with pre-listing period. This suggests that firms come from a less developed market will engage less in earnings smoothing when they are under the supervision of two authorities and in compliance with two sets of stringent rules. In the comparison among U.S. matched firms and non-cross-listed matched firms, cross-listed UK firms’ have less smoothed income than other two types of firms in the post-listing period. Meanwhile, cross-listed Taiwan firms show a more smoothed income than US and non-cross-listed firms. Altogether, the result evidences that firms’ earnings management behaviour are still prone to the market which firms operate in, and result in the cross-listed U.K. firms yield a reporting quality that’s comparable to U.S. matched firms while cross-listed Taiwan firms do not.

1.	Introduction	1
1.1	Research background and motivation	1
1.2	Research objective	5
1.3	Research flow chart	5
1.4	Research framework	6
2.	Literature Review and Hypotheses	7
2.1	Introduction to ADR market and regulation	7
2.2	Pre-listing difference	9
2.3	Change around cross-listing	13
2.4	Post-listing difference	15
3.	Empirical Design	22
3.1	Sample	22
3.2	Database	25
3.3	Empirical Models	26
4.	Empirical Results	31
4.1	Descriptive analysis	32
4.2	Pre-listing difference	34
4.3	Changes around cross-listing	39
4.4	Post-listing differences	43
4.5	Sensitive analysis	49
4.6	Additional Analysis	54
5.	Conclusion	62
5.1	Research conclusion	62
5.2	Research contribution and restriction	63
References		66

List of Table
Table 1 Sample selection.............................................................................................. 25
Table 2 Frequencies of CL firms.................................................................................. 32
Table 3 Descriptive statistics........................................................................................ 34
Table 4 Earnings smoothing analysis of UK CL firm versus UK NCL firm in pre-listing period .............................................................................................. 36
Table 5 Timely loss recognition analysis of UK match firms in the pre-listing period .......................................................................................................................... 37
Table 6 Earnings smoothing analysis of TW CL firm versus TW NCL firm in pre-listing period .............................................................................................. 38
Table 7 Earnings smoothing analysis of UK CL firm in the post versus pre listing period ................................................................................................................ 40
Table 8 Timely loss recognition analysis of UK CL firm in the post versus pre listing period ................................................................................................................ 41
Table 9 Earnings smoothing analysis of TW CL firm in the post versus pre listing period ................................................................................................................ 42
Table 10 Earnings smoothing analysis of UK CL firm versus US and UK NCL firm in post-listing period ............................................................................................. 45
Table 11 Timely loss recognition analysis of UK CL firm versus US and UK NCL firm in post-listing period ................................................................................. 46
Table 12 Earnings smoothing analysis of TW CL firm versus US firm and TW NCL firm in post-listing period ................................................................................. 47
Table 13 Timely loss recognition analysis of TW CL firm versus US and TW NCL firm in post-listing period ................................................................................. 48
Table 14 Frequencies of level II/III and level I listing CL firms ................................. 49
Table 15 Analysis of UK Level II/III listing CL firm versus US and UK NCL firm in post-listing period ............................................................................................. 51
Table 16 Analysis of TW Level II/III listing CL firm versus US firm and TW NCL firm in post-listing period ................................................................................. 53
Table 17 Analysis of UK NCL firm in the post versus pre listing period.................... 56
Table 18 Analysis of TW NCL firm in the post versus pre listing period ................... 57
Table 19 Analysis of UK CL firm versus TW CL firm in post-listing period ............. 59
Table 20 Analysis of UK level II/III listing CL firm vs level I listing CL firm in the post-listing period ............................................................................................. 61

Abdallah, A. A.-N. (2006). Regulations and Reporting Requirements of Cross-Listing in the US and UK. The certified accountant.
Abdallah, A. A.-N. (2008). Cross-listing, investor protection, and disclosure: Does it make difference? The case of cross-listed versus non-cross-listed firms. University of Bath school of management.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37.
Burgstahler, D. C., Hail, L., & Leuz, C. (2006). The Importance of Reporting Incentives: Earnings Management in European Private and Public Firms. The Accounting Review, 81(5), 983-1016.
Bushee, B. J., & Leuz, C. (2005). Economic consequences of SEC disclosure regulation: evidence from the OTC bulletin board. Journal of Accounting and Economics, 39(2), 233-264.
Charitou, A., & Louca, C. (2009). Cross-Listing and Operating Performance: Evidence from Exchange-Listed American Depositary Receipts. Journal of Business and Accounting, 36(1-2), 99-129.
Coffee, J. C., Jr. (1999). The future as history: the prospects for global convergence in corporate governance and its implications. Northwestern University Law Review, 641-708.
Coffee, J. C., Jr. (2002). Racing towards the Top?: The Impact of Cross-Listings and Stock Market Competition on International Corporate Governance. Columbia Law Review, 102(7), 1757-1831.
Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance : The role of accounting accruals. Journal of Accounting and Economics, 18(1), 3-42.
Doidge, C. (2004). U.S. cross-listings and the private benefits of control: evidence from dual-class firms. Journal of Financial Economics, 72(3), 519-553.
Doidge, C., Karolyi, G. A., & Stulz, R. M. (2004). Why are foreign firms listed in the U.S. worth more? Journal of Financial Economics, 71(2), 205-238.
Doidge, C., Karolyi, G. A., & Stulz, R. M. (2009). Has New York become less competitive than London in global markets? Evaluating foreign listing choices over time. Journal of Financial Economics, 91(3), 253-277.
Errunza, V. R., & Miller, D. P. (2000). Market Segmentation and the Cost of the Capital in International Equity Markets. Journal of Financial and Quantitative Analysis, 35(04), 577-600.
Fernandes, N., & Ferreira, M. A. (2008). Does international cross-listing improve the information environment. Journal of Financial Economics, 88(2), 216-244.
Griffiths, I. (1992). Creative Accounting: How to make your profits what you want them to be. London: Thomson Learning.
Karolyi, G. A. (2006). The World of Cross-Listings and Cross-Listings of the World: Challenging Conventional Wisdom. Review of Finance, 10(1), 99-152.
La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate Ownership Around the World. The Journal of Finance, 54(2), 471-517.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and Finance. The Journal of Political Economy, 106(6), 1113-1155.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1-2), 3-27.
Land, J., & Lang, M. H. (2002). Empirical Evidence on the Evolution of International Earnings. The Accounting Review, 77(Supplement 2002), 115-133.
Lang, M. H., Lins, K. V., & Miller, D. P. (2003a). ADRs, Analysts, and Accuracy: Does Cross Listing in the United States Improve a Firm's Information Environment and Increase Market Value? Journal of Accounting Research, 41(2), 317-345.
Lang, M. H., Raedy, J. S., & Wilson, W. (2006). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting and Economics, 42(1-2), 255-283.
Lang, M. H., Raedy, J. S., & Yetman, M. H. (2003b). How Representative Are Firms That Are Cross-Listed in the United States? An Analysis of Accounting Quality. Journal of Accounting Research, 41(2), 363-386.
Leuz, C. (2006). Cross listing, bonding and firms' reporting incentives: A discussion of Lang, Raedy and Wilson (2006). Journal of Accounting and Economics, 42(1-2), 285-299.
Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: an international comparison. Journal of Financial Economics, 69(3), 505-527.
Licht, A. N. (2003). Cross-Listing and Corporate Governance: Bonding or Avoiding. Chicago Journal of International Law, 4(1), 141.
Mitton, T. (2002). A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis. Journal of Financial Economics, 64(2), 215-241.
Myers, J. N., Myers, L. A., & Skinner, D. J. (2006). Earnings Momentum and Earnings Management. SSRN eLibrary.
Pagano, M., Röell, A. A., & Zechner, J. (2002). The Geography of Equity Listing: Why Do Companies List Abroad? The Journal of Finance, 57(6), 2651-2694.
Reese, W. A., & Weisbach, M. S. (2002). Protection of minority shareholder interests, cross-listings in the United States, and subsequent equity offerings. Journal of Financial Economics, 66(1), 65-104.
Shah, A. K. (1998). Exploring the infuences and constraints on creative accounting in the United Kingdom. The European Accounting Review, 7(1), 83-104.
Siegel, J. (2005). Can foreign firms bond themselves effectively by renting U.S. securities laws? Journal of Financial Economics, 75(2), 319-359.
Stulz, R. M. (1999). Globalization, coporate finance, and the cost of capital. Journal of Applied Corporate Finance, 12(3), 8-25.