This paper examines whether complying with U.S. financial reporting requirements impacts non-U.S. firms’ cross-listing decisions and listing choices. Using two constructs (reconciliation and disclosure) established at the firm level to proxy for foreign firms’ U.S. GAAP compliance costs, I find that compliance is a significant cost factor when non-U.S. firms consider whether they should issue or list their shares in the U.S. However, the importance of compliance costs diminishes when foreign firms decide whether they should cross-list on an organized U.S. stock exchange. The reduced significance of compliance costs is likely attributed to the various benefits associated with exchange-listing, which potentially outweigh the compliance costs. The study extends prior research by measuring a major cross-listing cost directly at the firm level. It offers a new perspective on the cost and benefits analyses and contributes to the understanding of the role accounting plays in foreign firms’ cross-listing activities.