The purpose of this paper is to provide some new evidence on the relationship between disclosure and the cost of equity capital. We propose a new specification for the empirical test based on the idea that in the previous models one crucial variable was missing: accounting policy choice. We test...

We examine the properties of the accounting earnings reported by local governments across Australia. Specifically, we examine the following research questions: (i) Does accrual accounting for local governments provide useful information? and (ii) Are earnings reported by local governments...

The research presented in this paper is an attempt to solve the problem of translation using the PPS (Purchasing Power Standard) theory. The proposed methodology uses PPS to eliminate inconsistencies that exchange rate brings into consolidated statements. Economic volume aggregates in PPS are...

We test the ability of analyst characteristics to explain relative forecast accuracy across legal origins (common law versus civil law). Common law countries generally have more effective corporate governance mechanisms, including stronger investor protection laws and inputs provided through...

In this journal, Buchheim and Beiersdorf discussed recent changes in the regulation of the management report (Lagebericht) in Germany. More specifically, their article addresses risk reporting, which is an integral part of the management report. While risk reporting has been explicitly required...

This study examines the business environment of Egypt, a nation at the beginning of its transition to a market economy, to determine whether national culture is associated with the use of accounting-based debt covenants in debt agreements. As a country's economy develops, agency problems occur....

The adoption of International Financial Reporting Standards (IFRS) is supported in many countries because it may improve the quality and international comparability of financial reporting. However, these goals are less likely to be achieved without regulatory oversight that promotes rigorous and...

The introduction of International Financial Reporting Standards (IFRS) in the EU is obviously an unusually important event for accounting, accountants and accounting researchers, and naturally European Accounting Review has been very keen in devoting this special issue to the topic. It will be a...

The effects of trading Level I ADRs in the US OTC market were investigated for 119 firms from Hong Kong, the United Kingdom (UK), Australia, Japan, South Africa, Germany and Brazil during the period February 1992 to April 2001. Since firms that undertake Level I ADR programs do not reconcile...

This paper describes and analyzes the issues of financial reporting and corporate communication in connection with corporate governance. The analysis is based on the studies conducted in the Anglo-American and the European academic literature both from a normative and a positive perspective. It...