The introduction of IFRS in Europe was intended to improve accounting quality and facilitate cross-border financial transactions. This study examines whether IFRS increases value-relevance of corporate disclosure using traders' response in financial markets of 15 EU countries. If the regulatory...

Not all claims are reported when a financial operational risk data base is created. The probability of reporting increase with the size of the operational risk loss and approaches one for very big losses. Operational risk losses comes from many different sources and can be expected to follow a...

Manipulation of earnings or analyst earnings expectations is costly to firms. Manipulators of earnings and/or analyst earnings expectations therefore are likely to report earnings that precisely meet or narrowly beat analyst earnings forecasts, resulting in a zero or small positive earnings...

Hirshleifer et al. (2004) argue that scaled Net Operating Assets (NOA) measures the extent to which operating/reporting outcomes provoke excessive investor optimism. In this paper, I argue that at least part of the information conveyed by NOA is industry common and cannot be diversified when...

Prior research shows that the cash component of earnings is more persistent than the accrual component of earnings. We investigate whether the persistence of the cash component is influenced by management's decision to retain or distribute cash flows. We find that when firms retain the cash...

We predict and find that accounting restatements that adversely affect shareholder wealth at the restating firm also induce share price declines among non-restating firms in the same industry. Peer firms with high industry-adjusted accruals experience a more pronounced share price decline than...

This paper proposes a risk-based explanation for the accrual anomaly. Risk is measured using a four-factor model motivated by the Intertemporal Capital Asset Pricing Model. Tests of the model suggest that a considerable portion of the cross-sectional variation in average returns to high and low...

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...

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...

This paper examines the information content of earnings following restatements of prior period earnings. Results indicate that the information content of earnings announcements declines in periods following a restatement, but that the loss of information content is temporary. In particular, the...