This paper contrasts the association between security prices and accounting information before and after the Spanish accounting reforms. Spanish regulations were changed during 1989 and 1990 so as to conform with EU requirements, bringing them broadly into line with international standards,...

We investigate whether accounting systems recognise bad news more promptly in earnings than good news, where news is proxied by changes in share price. The analysis is based on a sample of firm/years drawn from France, Germany, and the UK during 1990 to 1998. These three countries are the...