Disclosure practices of foreign companies interacting with U.S. markets

We analyze the association between corporate transparency and interaction with the US markets for a group of 466 firms from 13 Asia-Pacific countries. Our analysis uses newly developed Transparency and Disclosure scores by Standard & Poor's. Results show a positive association between corporate transparency and the following types of market interactions: business operations in the US, US listing, and international equity ownership, US equity or direct investment in the company's home country, and business travel from the home country to the US. There is mixed evidence that a company's exports to the US, and the company's country's trade with the US, are negatively associated with the level of its disclosure. Our empirical analysis controls for the previously documented association between disclosure and firm size, performance, and country legal origin. The documented association between market interactions and disclosure contributes to the on going debate on the impact of globalization on governance practices.