Mark H. Lang

Abstract: In this study we compare the value relevance of accounting measures for U.S. and German firms matched on industry and firm size, and evaluate the incremental informativeness of earnings adjusted on the basis of a formula proposed by analysts. German companies have been at the center of a controversy between the New York Stock Exchange (NYSE) and the Securities and Exchange Commission (SEC). The controversy arises from the SEC's insistence that, to list on a U.S. stock exchange, non-U.S. companies must reconcile earnings and shareholders' equity to U.S. generally accepted accounting practice (U.S.-GAAP) (Fuerbringer [ 1992] and Jarrell [ 1992] )41 The NYSE 's concern has been that

TL;DR: This article investigated the relation among ownership structure, analyst following, investor protection, and valuation, and found that analysts are less likely to follow firms with potential incentives to withhold or manipulate information, such as when the family/management group is the largest control rights blockholder.

TL;DR: In this paper, the authors investigate the financial statement effects of differences in accounting measurement practice in France, Germany, and the United Kingdom (U.K.) and find evidence of significant differences in financial ratios and the stock market valuation of accounting data.

TL;DR: This article examined the relation between firm-level transparency, stock market liquidity, and valuation across a variety of international settings and found that increased liquidity is associated with lower implied cost of capital and with higher valuation.

TL;DR: This paper examined the relation between firm-level transparency, stock market liquidity, and valuation across countries, focusing on whether the relation varies with a firm's characteristics and economic environment, concluding that increased liquidity is associated with lower implied cost of capital and with higher valuation.