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Accounting quality and information asymmetry of foreign direct investment firms

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  • Wang, Li-Hsun

Abstract

This study argues that the foreign direct investment firms mislead stakeholders and are associated with greater information asymmetry due to the raised agency problem. Results show that both earnings management and idiosyncratic volatility increase with foreign investment. Managerial ownership mitigates such inefficiency.

Suggested Citation

  • Wang, Li-Hsun, 2017. "Accounting quality and information asymmetry of foreign direct investment firms," Research in International Business and Finance, Elsevier, vol. 42(C), pages 950-958.
    • Handle: RePEc:eee:riibaf:v:42:y:2017:i:c:p:950-958
    DOI: 10.1016/j.ribaf.2017.07.029
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    References listed on IDEAS

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    2. Bestari Dwi Handayani & Abdul Rohman & Anis Chariri & Imang Dapit Pamungkas, 2020. "Corporate Financial Performance on Corporate Governance Mechanism and Corporate Value - Evidence from Indonesia," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 161-171.

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    More about this item

    Keywords

    Earnings management; Idiosyncratic risk; Foreign direct investment; Managerial ownership;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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