Compare the Disclosures of U.S.-listed Chinese Companies with U.S.-based Companies

Abstract

The purpose of this study is to compare the differences in disclosure quality between Chinese and American companies listed in the United States. Despite the fact that Chinese companies listed on a U.S. stock exchange are required to adhere to the same disclosure and financial reporting regulations as U.S. companies listed on that exchange, variations between the two persist. Consequently, this study seeks to explore and compare the specific disparities in disclosure quality between Chinese companies listed in the U.S. and American companies. The "use of proceeds" section of the initial IPO prospectus for both American and Chinese companies will be employed to assess the specificity of disclosure quality. Statistical data sampling and analysis will be conducted to compare their specificity of disclosure. Finally, a T-test will be employed to compare and contrast the results. Based on our research findings, it can be concluded that Chinese companies listed in the U.S. exhibit a significantly higher overall quality of information disclosure compared to domestically listed U.S. companies.