Using data from 21 countries, this paper analyzes the relation among analyst coverage, earnings management and financial development in an international context. We document that the effectiveness of financial analysts as monitors increases with a country's financial development (FD). We find...

This paper examines the impact of the accounting flexibility offered by IFRS 1 during the 2005 mandatory adoption of IFRS in the European Union. Same year reconciliations between local GAAP and IFRS are used on a sample of 1,635 European firms to determine the nature and extent of their use in...

Prior research provides mixed evidence on whether the transition to IAS/IFRS deters or contributes to greater earnings management (earnings smoothing). The dominant explanation for the conflicting results is self-selection. Early voluntary adopters had incentives to increase the transparency of...