This study examines whether application of IFRS by non-US firms results in accounting amounts comparable to those resulting from application of US GAAP by US firms. IFRS firms have greater accounting system and value relevance comparability with US firms when IFRS firms apply IFRS than when they...

This paper investigates the value relevance of cash flow figures prepared according to the IAS 7 Cash Flow Statements. Following previous studies in the field, we define the value relevance as the ability of financial information to explain stock prices and returns, i.e. the levels and changes...

This paper develops an accounting based equity valuation model for multinational firms, and uses the model to examine the forecasting and valuation properties of foreign currency gains and losses (TGL). It shows that TGL can be systematically decomposed into a core component and a transitory...

Size, not book-to-market, helps to explain cross-sectional differences in Chinese stock returns from 1996 to 2002. Similar to the U.S. experience, beta does not account for return differences among individual stocks. Due to the speculative nature of Chinese capital markets and the low quality...

This paper uses a valuation framework for a sample of firms from four European countries (France, Germany, Netherlands, and United Kingdom) to examine how are their accounting income and book value of equity perceived by the respective capital markets after taking into account industry effects....

A stock market liberalization is a decision by a country's government to allow foreigners to buy securities in that country's capital market. This study examines how the liberalization of the Korean stock market affected stock price behavior and changed the role accounting information for...

Previous studies have shown that financial accounting information produce economic effects, as a result of its role in reducing information asymmetry in capital markets. Recent theories sustain that the level of value-relevance of a country's accounting information is directly related to...

This paper examines whether the current reporting and disclosure requirements for foreign registrants in the United States affect foreign firms' decisions to list on a U.S. exchange. We find that while firms from a weak disclosure environment are more likely to cross-list and either trade...

We examine whether application of International Accounting Standards is associated with higher accounting quality. The application of IAS reflects the combined effects of features of the financial reporting system, including standards, their interpretation, enforcement, and litigation. We find...

This study documents a subtle and counter-intuitive interaction between operating cash flow (CFO) and accruals, and their association with future stock returns. While the two strategies should by construction capture similar anomalies, we find evidence in two large stock markets that they appear...