Does Mandatory IFRS Adoption Affect the Credit Ratings of Foreign Firms Cross-Listed in the U.S.?

SYNOPSIS: We examine whether the mandatory adoption of International Financial Reporting Standards (IFRS) affects the credit ratings of foreign firms cross-listed in the U.S. Consistent with the influence of accounting information quality on credit ratings that is established in the literature, we find significantly higher credit ratings among these cross-listed firms after IFRS. Furthermore, this effect is more pronounced among those from...