As the Securities and Exchange Commission commences a sweeping review of its disclosure regime, its staff may want to cast their eyes overseas: A new study finds that foreign companies listed on U.S. exchanges make disclosures that are clearer and less repetitive.
In fact, the further away a company’s headquarters is, the clearer the company’s filings in the United States, says Russell Lundholm, a professor of accounting at University of British Columbia’s Sauder School of Business. The same holds for other investor communications, such as earnings releases.
