This paper examines the implications of mandatory IFRS adoption on the accounting quality of banks in twelve EU countries. Specifically, we analyse how the change in the recognition and measurement of banks' main operating accrual item, the loan loss provision, affects income smoothing behaviour...

This study examines financial reporting quality (FRQ) effects around IFRS adoptions of German private firms across two important dimensions, earnings quality and disclosure practices. To capture differences in the motivations for IFRS adoptions, we identify four different types of adopting firms...

We examine whether fair value re-measurements on illiquid assets convey useful information to investors. Specifically, we investigate the return relevance of unrealized Level 3 fair value gains and losses (FVGL) for a sample of 219 listed U.S. banks from 2008 to 2017. We find that Level 3 FVGL...

Most prior studies attribute valuation discounts on certain fair valued assets to measurement error or bias. We argue that institutional differences across countries (e.g., information environment or market sophistication) affect investors' ability to process and impound fair value information...

The design of optimal central bank communication and accounting standards involves trading off the social costs and benefits of more precise public information. We examine whether central banks' accounting choices reflect these social costs and benefits. To measure the precision of accounting...

This paper examines the interaction of the IFRS 9 expected credit loss (ECL) model with supervisory rules and discusses potential implications for financial stability in the European Union. Compared to the incurred loss approach of IAS 39, the IFRS 9 ECL model incorporates earlier and larger...

Exploiting detailed disclosures mandated by Accounting Standard Codification (ASC) 820, we provide evidence for the return relevance of Level 3 fair value remeasurements for a comprehensive sample of U.S. listed banks. We find that Level 3 remeasurements recognized in earnings are more return...

This study examines whether conference calls provide additional information to analysts. For a large sample of conference calls, hosted by German firms between 2004 and 2007, our results show that conference calls improve analysts' ability to forecast future earnings accurately. This suggests...