International evidence on the impact of adopting English as an external reporting language

摘要: This study investigates the economic consequences of non-English-speaking companies adopting English as an external reporting language. We examine a sample European that initiate voluntary issuance annual report in addition to local language report. To control for self-selection, we use difference-in-differences design with propensity score matched sample. find adoption is associated increased foreign ownership, decreased information asymmetry, and analyst following. also these benefits are not conditional on IFRS financial reporting. Our findings hold if run number robustness checks correlated events (creation investor relations service, provision conference calls, and/or changes management). These results consistent used acting barrier investment some investors reports issued reducing investors’ processing costs.