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This research examines compliance with both International Accounting Standards (IAS) and United States Generally Accepted Accounting Principles (US GAAP) for companies listed on Germany's New Market. Based on a sample of 100 firms that apply IAS and 100 that apply US GAAP, we investigate the extent to which companies comply with IAS and US GAAP disclosure requirements in their year-2000 financial statements. Compliance levels range from 100% to 41.6%, with an average of 83.7%. The average compliance level is significantly lower for companies that apply IAS as compared to companies applying US GAAP. This study provides the first systematic evidence regarding the enforcement of US GAAP outside the US, and accordingly not subject to Securities Exchange Commission (SEC) review. The results unveil a considerable extent of non-compliance. The overall level of compliance with IAS and US GAAP disclosures is positively related to firms being audited by Big 5 auditing firms and to cross-listings on US exchanges. Compliance is also associated with references to the use of International Standards of Auditing (ISA) or US GAAS in the audit opinion. The findings add to the growing concerns regarding the lack of effective supervision in the German capital market.

and Key Results■ Our introduction to this focused issue of MIR (i) provides an overview of alternative approaches to the modeling of the relationship between internationalization and performance, (ii) suggests answers to the question why previous research on the relationship has yielded contradictory results and (iii) suggests ways how to overcome current problems of research in this important field of international business.■ The focused issue reflects the diversity of research on the internationalizationperformance relationship: it comprises both conceptual papers and empirical studies, the latter using different methods and data sets. Each of the papers represents a unique answer to the question of how research on the internationalizationperformance relationship can be conducted. In total, the papers provide a broad, but also detailed overview of the state-of-the-art in the field.

This study investigates the determinants of goodwill impairment decisions by firms applying IFRS based on a comprehensive sample of stock-listed firms from 21 countries. Multivariate logistical regression findings indicate that goodwill impairment incidence is negatively associated with economic performance, but also related to proxies for managerial and firm-level incentives. In addition, whereas goodwill impairment tends to be timely for firms in high enforcement countries, firms in low enforcement countries tend to be less responsive to declines in the economic value of goodwill; CEO compensation concerns affect the impairment decision for firms in low enforcement; and CEO reputation concerns and management preference for smooth earnings influence goodwill impairment decisions in high, as well as low, enforcement countries. We also find that private monitoring through institutional investors substitutes for public enforcement in the context of goodwill impairment when a country's enforcement regime is relatively weak.