IFRS adoption and accounting quality: A review

European Accounting Review

Volumn 16, Issue 4, 2007, Pages 675-702

  Soderstrom, Naomi S ^a   Sun, Kevin Jialin ^b  

^a UNIVERSITY OF COLORADO   (United States)

^b UNIVERSITY OF HAWAII   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 37549038651     PISSN: 09638180     EISSN: 14684497     Source Type: Journal    
DOI: 10.1080/09638180701706732     Document Type: Review

References (88)

1. Abad, C., Laffarga, J., Garcia-Borbolla, A., Larrán, M., Pinero, J. and Garrod, N. (2000) An evaluation of the value-relevance of consolidated versus unconsolidated accounting information: Evidence from quoted Spanish firms. Journal of International Financial Management and Accounting, 11:3, pp. 156-177.
2. Aboody, D., Barth, M. and Kasznikb, R. (1999) Revaluations of fixed assets and future firm performance: Evidence from the UK. Journal of Accounting and Economics, 26:1, pp. 149-178.
3. Ali, A. and Hwang, L. (2000) Country-specific factors related to financial reporting and the value relevance of accounting data. Journal of Accounting Research, 38:1, pp. 1-21.
4. Armstrong, C. and Jagolinzer, A. (2005) The IAS 39 'Carve-Out': How the European Union hedged its exposure to the international standard on derivatives and hedging. Harvard Business School Case
5. Armstrong, C., Barth, M., Jagolinzer, A. and Riedl, A. (2007) Market reaction to the IFRS adoption in Europe. Stanford University
6. Ashbaugh, H. (2001) Non-US firms' accounting standard choices. Journal of Accounting and Public Policy, 20:2, pp. 129-153.
7. Ashbaugh, H. and Davis-Friday, P. (2002) The role of non-U.S. firms' financial reporting in international mergers and acquisitions. University of Wisconsin at Madison and University of Notre Dame
8. Ashbaugh, H. and Olsson, P. (2002) An exploratory study of the valuation properties of cross-listed firms' IAS and US-GAAP earnings and book values. The Accounting Review, 77:1, pp. 107-126.
9. Ashbaugh, H. and Pincus, M. (2001) Domestic accounting standards, international accounting standards, and the predictability of earnings. Journal of Accounting Research, 39:3, pp. 417-434.
10. Auer, K. (1996) Capital market reactions to earnings announcements: empirical evidence on the difference in the information content of IAS-based earnings and EC Directives-based earnings. European Accounting Review, 5:4, pp. 587-623.
11. Ball, R. (2001) Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton Papers on Financial Services, pp. 127-169.
12. Ball, R. (2006) International Financial Reporting Standards (IFRS): Pros and cons for investors. University of Chicago
13. Ball, R. and Shivakumar, L. (2005) Earnings quality in U.K. private firms. Journal of Accounting and Economics, 39:1, pp. 83-128.
14. Ball, R., Kothari, S. P. and Robin, A. (2000) The effect of international institutional factors on properties of accounting earnings. Journal of Accounting and Economics, 29:1, pp. 1-51.
15. Ball, R., Robin, A. and Sadka, G. (2006) Are timeliness and conservatism due to debt or equity markets? An international test of 'contracting' and 'value relevance' theories of accounting. University of Chicago
16. Barth, M., Clinch, G. and Shibano, T. (1999) International accounting harmonization and global equity markets. Journal of Accounting and Economics, 26:1, pp. 201-235.
17. Barth, M., Landsman, W. and Lang, M. (2006) International accounting standards and accounting quality. Stanford University and University of North Carolina at Chapel Hill
18. Bartov, E., Goldberg, S. and Kim, M. (2005) Comparative value relevance among German, U.S., and International Accounting Standards: A German stock market perspective. Journal of Accounting, Auditing and Finance, 20:2, pp. 95-119.
19. Basu, S. (1997) The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 34:1, pp. 3-37.
20. Biddle, G., Seow, G. and Siegel, A. (1995) Relative versus incremental information content. Contemporary Accounting Research, 12:1, pp. 1-23.
21. Burgstahler, D., Hail, L. and Leuz, C. (2006) The importance of reporting incentives: Earnings management in European private and public firms. The Accounting Review, 81:5, pp. 983-1016.
22. Bushman, R. and Piotroski, J. (2006) Financial reporting incentives for conservative accounting: The influence of legal and political institutions. Journal of Accounting and Economics, 42:12, pp. 107-148.
23. Bushman, R. and Smith, A. (2001) Financial accounting information and corporate governance. Journal of Accounting and Economics, 32:1, pp. 237-333.
24. Bushman, R., Piotroski, J. and Smith, A. (2004) What determines corporate transparency?. Journal of Accounting Research, 42, pp. 207-252.
25. Bushman, R., Piotroski, J. and Smith, A. (2006) Capital allocation and timely accounting recognition of economic losses. University of North Carolina and University of Chicago
26. Comprix, J., Muller, K. and Stanford, M. (2003) Economic consequences from mandatory adoption of IASB standards in the European Union. Arizona State University, Pennsylvania State University and Texas Christian University
27. Cuijpers, R. and Buijink, W. (2005) Voluntary adoption of non-local GAAP in the European Union: A study of determinants and consequences. European Accounting Review, 14:3, pp. 487-524.
28. Daske, H. (2006) Economic benefits of adopting IFRS or US-GAAP-have the expected cost of equity capital really decreased?. Journal of Business Finance and Accounting, 33:34, pp. 329-373.
29. de Jong, A., Rosellón, C., Miguel, A. and Verwijmeren, P. (2006) The economic consequences of IFRS: The impact of IAS 32 on preference shares in the Netherlands. Erasmus Research Institute of Management
30. Dechow, P. and Schrand, C. (2004) Earnings quality. CFA Digest, 34:4, pp. 82-85.
31. Diamond, D. (1984) Financial intermediation and delegated monitoring. Review of Economics Studies, 51:166, pp. 393-414.
32. Diamond, D. and Verrecchia, R. (1991) Disclosure, liquidity, and the cost of capital. Journal of Finance, 46:4, pp. 1325-1359.
33. Ding, Y., Hope, O., Jeanjean, T. and Stolowy, H. (2007) Differences between domestic accounting standards and IAS: Measurement, determinants and implications. Journal of Accounting and Public Policy, 26:1, pp. 1-38.
34. Dye, R. (2002) Classifications manipulation and Nash accounting standards. Journal of Accounting Research, 40:4, pp. 1125-1162.
35. Ekholm, B. and Troberg, P. (1998) Quo vadis true and fair view?. Journal of International Accounting, Auditing, and Taxation, 7:1, pp. 113-129.
36. Fan, J. and Wong, T. J. (2002) Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of Accounting and Economics, 33:3, pp. 401-425.
37. Francis, J. and Wang, D. (2007) The joint effect of investor protection and Big 4 audits on earnings quality around the world. Contemporary Accounting Research
38. Francis, J., LaFond, R., Olsson, P. and Schipper, K. (2004) Costs of equity and earnings attributes. The Accounting Review, 79:4, pp. 967-1010.
39. Francis, J., Khurana, I. and Pereira, R. (2005) Disclosure incentives and effects on cost of capital around the world. The Accounting Review, 80:4, pp. 1125-1162.
40. Frankel, R. and Li, X. (2004) Characteristics of a firm's information environment and the information asymmetry between insiders and outsiders. Journal of Accounting and Economics, 37:2, pp. 229-259.
41. Guenther, D. and Young, D. (2000) The association between financial accounting measures and real economic activity: A multinational study. Journal of Accounting and Economics, 29:1, pp. 53-72.
42. Harris, T. (1995) International Accounting Standards versus US-GAAP Reporting: Empirical Evidence Based on Case Studies, South-Western College Publishing, Cincinnati, OH
43. Harris, T. and Muller, K. (1999) The market valuation of IAS versus US-GAAP accounting measures using Form 20-F reconciliations. Journal of Accounting and Economics, 26:1, pp. 285-312.
44. Harris, T., Lang, M. and Moeller, H. P. (1994) The value-relevance of German accounting measures: An empirical analysis. Journal of Accounting Research, 32:2, pp. 187-209.
45. Haw, I., Hu, B., Hwang, L. and Wu, W. (2004) Ultimate ownership, income management, and legal and extra-legal institutions. Journal of Accounting Research, 42:2, pp. 423-462.
46. Hayn, C. (1995) The information content of losses. Journal of Accounting and Economics, 20:2, pp. 125-153.
47. Holthausen, R. and Watts, R. (2001) The relevance of the value-relevance literature for financial accounting standard setting. Journal of Accounting and Economics, 31:1, pp. 3-75.
48. Huddart, S., Hughes, J. and Brunnermeier, M. (1999) Disclosure requirements and stock exchange listing choices in an international context. Journal of Accounting and Economics, 26, pp. 237-269.
49. Hung, M. (2001) Accounting standards and value relevance of financial statements: An international analysis. Journal of Accounting and Economics, 30:3, pp. 401-420.
50. Hung, M. and Subramanyam, K. R. (2007) Financial statement effects of adopting International Accounting Standards: The case of Germany. Review of Accounting Studies, 12:4, pp. 623-657.
51. Jacobson, R. and Aaker, D. (1993) Myopic management behavior with efficient, but imperfect, financial markets. Journal of Accounting and Economics, 16:4, pp. 383-405.
52. Johnston, D. (2006) Managing stock option expense: The manipulation of option-pricing model assumptions. Contemporary Accounting Research, 23:2, pp. 395-425.
53. Jones, J. (1991) Earnings management during import relief investigations. Journal of Accounting Research, 29:2, pp. 193-228.
54. Joos, P. and Lang, M. (1994) The effects of accounting diversity: evidence from the European community. Journal of Accounting Research, 32, pp. 141-168.
55. Kinnunen, J., Niskanen, J. and Kasanen, E. (2000) To whom are IAS earnings informative? Domestic versus foreign shareholders' perspectives. European Accounting Review, 9:4, pp. 499-517.
56. Kirk, N. E. (2001) True and Fair View' versus 'Presented Fairly in Conformity with Generally Accepted Accounting Principles. Massey University
57. KPMG (2000) Global financial reporting, IAS or U.S. GAAP? European survey. London
58. La Porta, R., Lopez-De-Silanes, F., Shleifer, A. and Vishny, R. (1998) Law and finance. Journal of Political Economy, 106:6, pp. 1113-1155.
59. La Porta, R., Lopez-De-Silanes, F. and Shleifer, A. (2006) What works in securities laws?. Journal of Finance, 61:1, pp. 1-32.
60. Lang, M., Raedy, J. S. and Wilson, W. (2006) Earnings management and cross listing: Are reconciled earnings comparable to US earnings?. Journal of Accounting and Economics, 42:12, pp. 255-283.
61. Leuz, C. (2001) Comment and discussion of 'Infrastructure Requirements for an Economically Efficient System of Public Financial Reporting and Disclosure'. Brookings-Wharton Papers on Financial Services, pp. 170-182.
62. Leuz, C. (2003) IAS versus US GAAP: Information-asymmetry based evidence from Germany's New Market. Journal of Accounting Research, 41:3, pp. 445-472.
63. Leuz, C. (2006) Cross listing, bonding and firms' reporting incentives: a discussion of Lang, Raedy and Wilson (2006). Journal of Accounting and Economics, 42:12, pp. 285-299.
64. Leuz, C. and Oberholzer-Gee, F. (2006) Political relationships, global financing, and corporate transparency: Evidence from Indonesia. Journal of Financial Economics, 81:2, pp. 411-439.
65. Leuz, C. and Verrecchia, R. (2000) The economic consequences of increased disclosure. Journal of Accounting Research, 38, pp. 91-124.
66. Leuz, C. and Wüstemann, J. (2003) The role of accounting in the German financial system. The German Financial System, Oxford University Press, Oxford
67. Leuz, C., Nanda, D. and Wysocki, P. (2003) Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69:3, pp. 505-527.
68. McEnroe, J. and Martens, S. (1998) Individual investors' perception regarding the meaning of US and UK audit report terminology: Present fairly in conformity with GAAP and give a true and fair view. Journal of Business Finance and Accounting, 25:34, pp. 289-307.
69. Morck, R. (1996) On the economics of concentrated ownership. Canadian Business Law Journal, 26:1, pp. 63-85.
70. Morck, R., Yeung, B. and Yu, W. (2000) The information content of stock markets: Why do emerging markets have synchronous stock price movements?. Journal of Financial Economics, 58:12, pp. 215-260.
71. Niskanen, J., Kinnunen, J. and Kasanen, E. (1998) A note on the information content of parent company versus consolidated earnings in Finland. European Accounting Review, 7:1, pp. 31-40.
72. Nobes, C. W. and Parker, R. H. (1991) 'True and Fair': A survey of UK financial directors. Journal of Business Finance and Accounting, 18:3, pp. 359-375.
73. Ohlson, J. (1995) Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11:2, pp. 661-687.
74. Pae, J., Thornton, D. and Welker, M. (2006) The reduction of firms' ownership induced agency costs following financial reporting reform in the European Union. Queen's University
75. Parker, R. H. and Nobes, C. W. (1991) 'True and Fair': UK auditors' view. Accounting and Business Research, 21:84, pp. 349-361.
76. Pincus, M., Rajgopal, S. and Venkatachalam, M. (2007) The accrual anomaly: International evidence. The Accounting Review, 32:1, pp. 169-203.
77. Pownall, G. and Schipper, K. (1999) Implications of accounting research for the SEC's consideration of International Accounting Standards. Accounting Horizons, 13:3, pp. 259-280.
78. Rutteman, P. (1984) The EEC Accounting Directives and their Effects, University College, Cardiff
79. Schipper, K. (2005) The introduction of International Accounting Standards in Europe: Implications for international convergence. European Accounting Review, 14:1, pp. 101-126.
80. Schipper, K. and Vincent, L. (2003) Earnings quality. Accounting Horizons, 17, pp. 97-110.
81. Schumpeter, J. (1939) Business Cycles, McGraw-Hill, New York
82. Spence, M. (1973) Job market signaling. Quarterly Journal of Economics, 87:3, pp. 355-374.
83. Stulz, R. and Williamson, R. (2003) Culture, openness, and finance. Journal of Financial Economics, 70:3, pp. 313-349.
84. Sun, K. (2006) Financial reporting quality, capital allocation efficiency, and financing structure: An international study. University of Hawaii at Manoa
85. Sunder, S. (2002) Regulatory competition among accounting standards within and across international boundaries. Journal of Accounting and Public Policy, 21:3, pp. 219-234.
86. van Tendeloo, B. and Vanstraelen, A. (2005) Earnings management under German GAAP versus IFRS. European Accounting Review, 14:1, pp. 155-180.
87. Whittington, G. (2005) The adoption of International Accounting Standards in the European Union. European Accounting Review, 14:1, pp. 127-153.
88. Young, D. and Guenther, D. (2002) Financial reporting environments and international capital mobility. Journal of Accounting Research, 41:3, pp. 553-579.