This study examines the main problem raised by pro forma earnings (or “street” earnings) because investors may have trouble focusing their attention when they are relying on this information to make decisions about investing in French publicly traded securities.This article, based on 116 pro...

A premise of standard setters and of much empirical research is that improving the quality of accounting standards and their implementation increases information in capital markets. This paper challenges this premise and shows that there are situations in which “better”, i.e., more...

Using event study methodology in a Canadian setting, this paper investigates whether the information content of earnings announcements increased for Canadian Venture Exchange (TSXV) firms and Toronto Stock Exchange (TSX) firms following mandatory adoption of international financial reporting...

This paper compares the information content of financial statements based on IFRS with those based on Finnish Accounting Standards (FAS) using a sample of mandatory IFRS adopters. Finland is particularly well suited for this comparison because it has a high-quality reporting environment, its...

We hypothesize that firms required by SFAS No. 131 to begin disclosing segment information attempt to counteract potential competitive harm by increasing information redaction. Using a difference-in-difference setting, we find that firms increasing the number of reported segments after the rule...

Residual income valuation is based on the assumption that the clean surplus relation holds. As pointed out by Ohlson (2000), among others, the standard clean surplus relation is frequently violated. Moreover, standard residual income valuation models rest on the implicit assumption that future...

Residual income valuation is based on the assumption that the clean surplus relation holds. As pointed out by Ohlson (2000), among others, the standard clean surplus relation is frequently violated. Moreover, standard residual income valuation models rest on the implicit assumption that future...

This paper examines how the characteristics of accounting systems and management incentives interact and collectively determine financial reporting quality. We develop a rational expectations equilibrium model that features a steady-state firm with investments, financial and non-financial...

We use hand-collected data for a sample of large European firms to investigate the influence of countries' institutional and economic factors on managers' non-GAAP disclosures. We find that managers are more likely to use non-GAAP measures to meet or beat earnings benchmarks that GAAP earnings...

Within the European Union, the IAS-Regulation has harmonized applicable accounting standards for consolidated financial statements of capital market oriented companies by requiring IFRS since 2005. Regarding enforcement of financial reporting, the IAS-Regulation offered only small guidance for...