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Reply to the discussion on "Contracts valuation assessment noise and cross-border listing of equities on U.S. and U.K. stock markets"
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Reply to the discussion on "Contracts valuation assessment noise and cross-border listing of equities on U.S. and U.K. stock markets"

Gordian Ndubizu and R Wallace
The International journal of accounting, v 38(4), pp 427-430
01 Dec 2003
DOI: https://doi.org/10.1016/j.intacc.2003.09.005

Abstract

Articles Financial reporting GAAP Noise Securities markets
While admitting that the assessment noise construct in Ndubizu and Wallace (2002) is both plausible and interesting, Kallapur (2003) suggests that it does not provide sufficient evidence for the existence of assessment noise, which is the main thrust of the paper. He therefore suggests that they should have provided evidence on whether the differences in earnings persistence among firms across different countries are greater than similar differences among firms within the same country. However, foreign investors, using the mindsets of their home GAAP, would spuriously assess the avlue relevance of cross-border firms' contracts because they often ignore the GAAP of the countries in which the cross-border firms are domiciled.

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