Using variation in book-tax conformity across EU countries, we provide new evidence on whether mandatory IFRS adoption leads to increases in earnings quality. Specifically, we examine if the relation between earnings quality and IFRS adoption differs among firms in countries with and without a...

Purpose: Based on signal theory and legitimacy theory, this paper examines whether firms with financial reporting misstatements (restatements) would prefer conservative financial reporting to send signals regarding their determinants of improving financial reporting credibility and legitimate...

Based on signal theory and legitimacy theory, this paper examines whether firms with financial reporting misstatements (restatements) would prefer conservative financial reporting to send signals regarding their determinants of improving financial reporting credibility and legitimate...

We find that firms that meet or just beat last’s year earnings (henceforth, MBE firms) have a lower post-filing stock return volatility in the month following the 10-K filing. We also find that this negative relation is stronger for the MBE firms providing more readable 10-K. Furthermore, we...

This paper explores the quality of accounting information in listed family firms. We exploit the features of the Italian equity market characterized by high ownership concentration across all types of firms to disentangle the effects of family ownership from other major block-holders on the...

Fu, Kraft and Zhang (2012) use a hand-collected sample of firms with different interim reporting frequencies from 1951 to 1973 to test whether higher reporting frequency is associated with lower information asymmetry and a lower cost of equity capital. Their results suggest that firms with...

Using hand-collected data on firms' interim reporting frequency from 1951 to 1973, we examine the impact of financial reporting frequency on information asymmetry and the cost of equity. Our results show that higher reporting frequency reduces information asymmetry and the cost of equity, and...

We examine how the regulation of financial reporting frequency affects corporate innovation. We use a difference-in-differences approach based on a sample of treatment firms that experience a change in their reporting frequency and matched industry peers and control firms whose reporting...

This study investigates whether opportunistic earnings management affects the value relevance of net income and book value in determining stock price. We document a decrease in the value relevance of earnings in the year of an equity offering for a group of firms that exhibit ex post evidence of...

Proponents of IFRS argue that applying uniform accounting standards leads to comparable financial statements. While previous studies have illustrated that initial IFRS disclosure quality significantly varies upon IFRS adoption, there is little evidence whether disclosures become more comparable...