International Financial Reporting Standards (IFRS) contain several policy options. This paper examines the choices made in 2008/9 IFRS financial statements by large listed companies from five countries on all the options that are observable. We compare these choices with those that had been made...

This study investigates whether the auditors incorporate the implications of potential litigation risks arising from their client firms' earnings management through real activities manipulations (REM). Using a large sample of US firms, I find that REM is significantly positively related to audit...

I study whether managers use real activities manipulation and accrual-based earnings management as substitutes in managing earnings. I find that managers trade off the two earnings management methods based on their relative costs and that managers adjust the level of accrual-based earnings...

We relate the agency issues inherent in management buyouts and in earnings management. Income-reducing earnings management occurs prior to management buyouts. When insiders own small amounts of stock, outside monitoring mechanisms such as institutional ownership and Big Six audit firms reduce...

We provide a bridge between the voluntary disclosure and the earnings management literature. Voluntary disclosure models focus on managers' discretion in deciding whether or not to provide truthful voluntary disclosure to the capital market. Earnings management models, on the other hand,...

Governance of public companies in Indonesia is concentrated in a particular group of controlling shareholder. The group is constituted in various ways like family, government, widely owned financial institutions, widely owned companies or others as a controlling shareholder. The controlling...

This paper investigates the asymmetric market valuation of negative and positive nonrecurring items as explained by accounting conservatism. We argue that special items, also known as nonrecurring operating gains and losses, have asymmetric market valuations, as proxied for by the earning...

The aim of this study is to investigate the impact of enforcement (greater monitoring of auditors and more regulatory scrutiny of financial reporting) on accounting quality under IFRS using measures of earnings smoothing, managing towards earnings targets, timely loss recognition and value...

In this paper, we investigate the effects of goodwill accounting under IAS 36 on dividend policy in Italian Listed Companies. The technical areas of discretion in impairment test accounting enable pursuing three typical forms of earnings management: earnings smoothing, earnings increasing and...

Following the international effort of strengthening corporate governance, this study investigates the impact of Corporate Governance Principles and Recommendation (ASX 2009) on the credibility of accounting information. By using 138 companies listed on the Australian Stock Exchange (ASX), this...