Another good reason for undertaking replication studies is that more powerful tests of
disclosure theories are possible in settings where greater variation is possible due to less
stringent regulation. Given that the US market is heavily regulated, other countries are
being studied by non-US researchers (and a few US researchers). It is likely that significant
insights will emerge from attempts to understand the reasons for country differences in
market effects, disclosure decisions, earnings management behaviour and analysts’
behaviour. It is, of course, first necessary to document these differences.