This study examines the impact of improvements in institutional oversight specifically for compliance with International Financial Reporting Standards (IFRS) on accrual quality in Europe. The sample comprises 9339 firm-year observations from a treatment sample of three European countries that...

In this paper, I show a generalization of the negative relation of traditional accruals and percent accruals with future returns in 11 of 16 European countries. Positive abnormal returns from hedge portfolios on both accrual measures summarize the economic significance of this generalization....