Note(s): Table 5 reports whether disclosure quality ratings by the Shanghai and Shenzhen stock exchanges have differential effects on the outcome variables. The outcome variables include market reactions to the announcement of disclosure quality ratings (CAR), future institutional ownership (F_INST), future analyst coverage (F_ANA), future analyst forecast errors (F_FERRORS), future analyst forecast dispersion (F_DISPERSION), future enforcement actions from the CSRC or the stock exchange (F_ENFORCE), and future receipt of comment letters on annual reports (F_ANNLETT). The test variable is the interaction between excess disclosure quality ratings (INFO) and the indicator of Shanghai listings (SH). The models are OLS in columns (1) through (5) and Probit in columns (6) and (7). Marginal effects at the mean are reported as coefficients for the Probit models. Detailed variable definitions are in  Appendix 2. t−statistics or z−statistics underneath the coefficients are based on standard errors clustered at the firm. ***, **, and * denote two−tailed statistical significance at the 1%, 5%, and 10% level, respectively

Source(s): Table created by authors