The Consequences of Allowing Home Country Auditors to Audit Cross-listed Firms: Evidence from Hong Kong-listed H Share Firms Manyi Fan1, Bin Ke2, Wenruo Wu3, Lijun Xia4, and Qingquan Xin5 April 8, 2020 We wish to thank Xi Wu (discussant), Donghua Chen, Pingyang Gao, Yongxiang Wang, and workshop participants at the Nanjing University and the 3rd New Institutional Accounting Conference (Shanghai, 2019) for helpful comments. 1 Department of Accounting, NUS Business School, National University of Singapore, B01-03, 1 Business Link, Singapore 117592. Email:
[email protected]. 2 Department of Accounting, NUS Business School, National University of Singapore, Mochtar Riady Building, BIZ 1, # 07-53, 15 Kent Ridge Drive, Singapore 119245.Tel: +65 6601 3133. Fax: +65 6773 6493. Email:
[email protected]. 3 Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, P.R. China 200030. Tel: +86-183 1707 8667. Email:
[email protected]. 4 Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, P.R. China 200030. Tel: +86-21-6293 2639. Email:
[email protected]. 5 Chongqing University. Email:
[email protected]. 1 The Consequences of Allowing Home Country Auditors to Audit Cross-listed Firms: Evidence from Hong Kong-listed H Share Firms April 8, 2020 The Consequences of Allowing Home Country Auditors to Audit Cross-listed Firms: Evidence from Hong Kong-listed H Share Firms ABSTRACT We examine the consequences of a 2010 Hong Kong regulation that allows, for the first time, companies incorporated in mainland China and cross-listed in Hong Kong (H share companies) to hire mainland domiciled auditors to audit their Hong Kong financial reports.