Accounting Procedures Act Changing How Foreign Firms Converge Toward U.S. Regulations, Study Finds

Finance research has demonstrated that in the global economy, non-U.S. firms benefit from convergence toward U.S. market and legal regulations. University of Arkansas researchers have examined the relative advantages of the two convergence methods - cross-listing and acquisition by a U.S. firm - and determined that passage of the 2002 Sarbanes-Oxley Act, which tightened reporting and accounting procedures in response to major corporate scandals, is changing the way foreign firms converge.