@article{Huddart1999237,
  author = {Steven Huddart and John Hughes and Markus Brunnermeier},
  title = {Disclosure requirements and stock exchange listing choice in an international context},
  abstract = { <p>We use a rational expectations model to examine how public disclosure requirements affect listing decisions by rent-seeking corporate insiders, and allocation decisions by liquidity traders seeking to minimize trading costs. We find that exchanges competing for trading volume engage in a {\textquoteleft}race for the top{\textquoteright} whereunder disclosure requirements increase and trading costs fall. This result is robust to diversification incentives of risk-averse liquidity traders, institutional impediments that restrict the flow of liquidity, and listing costs. Under certain conditions, unrestricted liquidity flows to low disclosure exchanges. The consequences of cross-listing also are modeled.</p> },
  year = {1999},
  journal = {Journal of Accounting and Economics},
  volume = {26},
  number = {1-3},
  pages = {237 - 269},
  note = {<p>Competition among exchanges leads to a "race to the top" in disclosure standards.</p>},
  language = {eng},
}