The literature suggests that real earnings management (REM) activities can increase adverse selection-risk in capital markets. Due to their opacity and the difficulties in understanding their implications, REM strategies may increase the level of information asymmetry among investors. This paper...

We examine whether the switch to IFRS has affected the value relevance and persistence of net income. In addition, since IFRS adoption has involved changes in the location of non-recurring items in the income statement, we also examine whether these changes have influenced the value relevance,...