Your Authors Note Several Empirical Studies That Have Found

question 53

Multiple Choice

Your authors note several empirical studies that have found:

• A) no share price effect for foreign firms that cross-list on major U.S. exchanges.
• B) a positive share price effect for foreign firms that cross-list on major U.S. exchanges.
• C) a negative share price effect for foreign firms that cross-list on major U.S. exchanges.
• D) none of the above

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Adjustments

Entries made in accounting records to correct or update financial information.

Accrued Items

Expenses or revenues that have been incurred or earned but have not yet been recorded or paid.

Time Period Assumption

An accounting principle that assumes a business's complex financial activities can be divided into shorter, discrete time periods, such as months, quarters, or years.