We examine how the transition from local GAAPs to IAS/IFRS of companies that are publicly traded on a European stock exchange affects earnings management. To measure earnings management we apply 15 different proxies. In analyzing 17 European countries and more than 18,000 firm-year observations...

This study examines whether outside directors factor in litigation costs for the firm while monitoring optimal disclosure policy. It investigates the association of management earnings forecast disclosure and the proportion of outside directors across two regimes with unequal litigation costs -...

Accounting is the window of any business firm. With the increased usage of computers in the arena of the Accounting Information System, we can see a drastic change from paper-journals and ledgers to computer-based formats. So to walk along with this drastic change it is necessary to integrate...

We examine the consequences for the stock price movement of Andersen's German clients of several news events during the Enron crisis that were potentially damaging to the reputation of Enron's auditor Andersen. It seems to be likely that there may not only have been reputation-damaging effects...

This paper examines the 2005 financial disclosure for Evans and Tate Limited and its controlled entities. The first section of the paper examines the composition of the group, group profit, group taxation, and the impact of IFRS. One key finding is there is no estimate by the company as to the...

The separation of leases into operating and finance leases for accounting purposes can result in incentives to favour operating lease contracts since they avoid on-balance sheet debt. The IASB is conducting an active research project on leasing, following the G4+1 group's research on possible...

The main purpose of this study is to investigate whether and how Japanese firms manage reported earnings. We first investigate whether Japanese firm managers engage in earnings management to avoid decreases in earnings and losses by examining earnings distribution. However, the test of earnings...

Prior research documents that conditional conservatism, measured as the asymmetric timeliness of earnings reflecting bad versus good news, varies with cross-country differences in institutional regimes. In this paper, we examine the determinants of conditional conservatism and related earnings...

Discount rate selection represents a centrally material factor impacting valuation models. Given the strong reliance on discounted cash flow modelling as a basis for determining an assets recoverable amount, the judgement exercised by reporting entities regarding rate selection is of paramount...

Although tax values of corporate assets and liabilities can be relevant for economic decisions, they are typically unknown to financial statement users. Tax values permit to conduct empirical studies about exercise of IFRS and tax options. Furthermore, the level of tax loss carryforwards and tax...