Journal ArticleDOI
IFRS Adoption and Accounting Quality: A Review
TLDR
In this paper, a review of the literature on adoption of different Generally Accepted Accounting Principles (GAAP) is provided, which provides background and guidance for researchers studying the change in accounting quality following widespread IFRS adoption in the EU.Abstract:Â
In 2002, the European Union (EU) Parliament passed a regulation that requires consolidated and simple accounts for all companies listed in the EU to use International Financial Reporting Standards (IFRS) for fiscal years starting after 1 January 2005. This change in accounting systems will have a large impact on the information environment for EU companies. This paper provides a review of the literature on adoption of different Generally Accepted Accounting Principles (GAAP). We thus provide background and guidance for researchers studying the change in accounting quality following widespread IFRS adoption in the EU. We argue that cross-country differences in accounting quality are likely to remain following IFRS adoption because accounting quality is a function of the firm's overall institutional setting, including the legal and political system of the country in which the firm resides.read more
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Journal ArticleDOI
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research
Christian Leuz,Peter D. Wysocki +1 more
TL;DR: The authors discusses the empirical literature on the economic consequences of disclosure and financial reporting regulation, drawing on U.S. and international evidence, highlighting the challenges with quantifying regulatory costs and benefits, measuring disclosure and reporting outcomes, and drawing causal inferences from regulatory studies.
Journal ArticleDOI
Incentives or Standards: What Determines Accounting Quality Changes around IFRS Adoption?
TL;DR: This paper examined the impact of managerial financial reporting incentives on accounting quality changes around International Financial Reporting Standards (IFRS) adoption and found that firms that resist IFRS adoption have closer connections with banks and inside shareholders, consistent with lower incentives for more compr...
Article Type: Original Article DOES MANDATORY IFRS ADOPTION IMPROVE THE INFORMATION ENVIRONMENT?
TL;DR: In this article, the authors examine the effect of mandatory IFRS adoption on firms' information environment and find that the improvement in the information environment is driven both by information and comparability effects.
Posted Content
The Information Content of Annual Earnings Announcements and Mandatory Adoption of IFRS
TL;DR: In this paper, the authors examined whether the information content of earnings announcements increases in countries following mandatory IFRS adoption, and conditions and mechanisms through which increases occur, and found evidence of three mechanisms that increase information content: reducing reporting lag, increasing analyst following, and increasing foreign investment.
Journal ArticleDOI
Mandatory IFRS reporting and changes in enforcement
TL;DR: In this article, the authors investigated the impact of reporting under International Financial Reporting Standards (IFRS) on the capital market and found that, across all countries, mandatory IFRS reporting had little impact on liquidity.
References
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Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
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Job Market Signaling
TL;DR: In this paper, the authors present a model in which signaling is implicitly defined and explains its usefulness, in which the employer is not sure of the productive capabilities of an individual at the time he/she hires him.
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Financial Intermediation and Delegated Monitoring
TL;DR: In this paper, the authors developed a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders, and presented a characterization of the costs of providing incentives for delegated monitoring by a financial intermediary.
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Earnings Management During Import Relief Investigations
TL;DR: In this article, the authors test whether firms that would benefit from import relief attempt to decrease earnings through earnings management during import relief investigations by the United States International Trade Commission (ITC).
Journal ArticleDOI
Earnings, Book Values, and Dividends in Equity Valuation*
TL;DR: In this article, a model of a firm's market value as it relates to contemporaneous and future earnings, book values, and dividends is developed and analyzed, and two owners' equity accounting constructs provide the underpinnings of the model: the clean surplus relation applies and dividends reduce current book value but do not affect current earnings.