We plan to examine the effect of regulatory arbitrage on the quality of bank financial reporting in a cross-boarding banking setting. Our sample will consists of subsidiary banks in various host countries (owned by their parent banks in home countries). We will example weather that regulations of parent banks’ home countries affect the disclosure concerning loan loss provisions and non-performing loans by their subsidiary banks in foreign countries. We will also consider whether regulations in home countries also increase the likelihood that a banks’ foreign subsidiaries receive qualified audit opinions. In addition, we expect that the effect of home-country regulatory forbearance of subsidiaries’ locating countries. Overall, our study will contribute to the literature by documenting an additional cost of regulatory arbitrage, namely that more restrictive home-country regulations tend to increase a bank’s financial reporting opacity abroad.
To complete the subscription process,
please click the link in the email we just sent you.
Oops! Subscription Error,
you should try again.
Confirmation Success. Thank you.