Earnings Comovement and Accounting Comparability: The Effects of Mandatory IFRS Adoption

Lang, Mark H.; Maffett, Mark G.; Owens, Edward L.

doi:10.2139/ssrn.1676937

Cited by 117 publications

(121 citation statements)

References 15 publications

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“…Yip and Young (2012) also used ROA in the same way as calculated in this research. Both in this research and in other studies adopting similar adaptations (Yip & Young, 2012;Lang et al 2010;Cascino & Gassen, 2012;Brochet et al, 2013) no significant bias was noticed in relation to the original measurement by DeFranco et al (2011).…”

Section: Comparability Measurementsupporting

confidence: 58%

“…As a measurement of output, the comparability obtained by means of this model has some advantages, such as increased robustness in statistical analysis, lower bias of the researcher, and higher reliability in data collection. Moreover, it was widely used in recent studies on the theme (DeFranco et al, 2011;DeFond et al, 2011;Barth, Landsman, Lang & Williams, 2012;Brochet, Jagolinzer & Riedl, 2013;Lang, Maffett & Owens, 2010;Fang, Li, Xin & Zhang, 2012;Neel, 2013;Peterson, Schmardebeck & Wilks, 2012;Yip & Young, 2012;Barth et al, 2013;Sohn, 2011;Cascino & Gassen, 2012;Kim, Kraft & Ryan 2013), and this already guarantees an external validation to it.…”

Section: Comparability Measurementmentioning

confidence: 99%

“…To choose sectors, level 2 of the North American Classification System (NAICS) was used. Level 2 of the NAICS was used a large part of the studies investigating comparability within sectors (DeFranco et al, 2011;Yip & Young, 2012;Lang et al, 2010). The selected sectors were those with more than a company having quarterly data available from 2002 to 2012.…”

Section: Researched Universe and Data Collectionmentioning

confidence: 99%

See 2 more Smart Citations

Manager's Discretionary Power and Comparability of Financial Reports: An Analysis of the Regulatory Transition Process in Brazilian Accounting

Ribeiro

Carmo

Fávero

et al. 2016

Rev. contab. finanç.

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This research aimed to directly evaluate the impact of the accounting regulatory flexibility movement on the comparability of financial reports. The country chosen for the analysis was Brazil, because it was one of the few countries in the world where a process of regulatory change from a completely rule-based standard with a strong link to tax accounting (Lopes, 2011) to a principle-based standard with greater need for decision by managers who prepare the financial reports took place. To measure comparability, the accounting function similarity model developed by DeFranco, Kothari and Verdi (2011) was used. The companies analyzed were all listed ones with full data for the period concerned having, at least, a pair company within the same economic activity sector. To obtain the research results, we adopted a panel data model where the years 2005 to 2012 were compared to the year 2004. The results obtained prove that, on average, there was no significant decrease in the comparability level within country during the regulatory transition period in Brazil. On the contrary, there was an increase in genuine comparability in the year 2012 when compared to 2004. In the model adjusted by stepwise, the years 2011 and 2012 had a significantly higher average comparability when compared to 2004. The results found corroborate other researches addressing the quality of accounting information (Collins, Pasewark, & Riley, 2012;Psaros & Trotman, 2004;Agoglia, Doupnik, & Tsakumis, 2011) and prove the superiority of the principle-based standard also over the comparability of financial reports. The main conclusion of this research is that increasing manager's discretionary power through flexibility of accounting standards does not decrease the comparability of financial reports.

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Section: Comparability Measurementsupporting

confidence: 58%

Section: Comparability Measurementmentioning

confidence: 99%

Section: Researched Universe and Data Collectionmentioning

confidence: 99%

See 1 more Smart Citation

Manager's Discretionary Power and Comparability of Financial Reports: An Analysis of the Regulatory Transition Process in Brazilian Accounting

Ribeiro

Carmo

Fávero

et al. 2016

Rev. contab. finanç.

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show abstract

“…Among them, only one third of the studies mentioned are consistent with the IFRS regulatory objectives. Findings from studies such as Ahmed et al (2013), Atwood et al (2011) and Lang et al (2010) disprove consistency with the IFRS regulatory objectives. Ahmed et al (2013) investigated the infl uence of mandatory adoption of IFRS on 1631 fi rms in 20 countries and another 1631 companies in 15 countries which did not adopt IFRS.…”

Section: Literature Underpinningmentioning

confidence: 95%

Influence of IFRS on Earnings Manipulation: Evidence from the European Union

Miková¹

2014

AOP

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“…In his point of view, financial ratios have always been a valuable tool for lodging industry managers. Ratios allow the user to summarize and analyze related data to provide meaningful information for making decisions [6,7].…”

mentioning

confidence: 99%

Financial Ratios (Accounting Ratios) and Survival of Microfinance Institutions in Ghana

EE¹,

Addai²

2015

J Bus Fin Aff

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Earnings Comovement and Accounting Comparability: The Effects of Mandatory IFRS Adoption

Cited by 117 publications

References 15 publications

Manager's Discretionary Power and Comparability of Financial Reports: An Analysis of the Regulatory Transition Process in Brazilian Accounting

Manager's Discretionary Power and Comparability of Financial Reports: An Analysis of the Regulatory Transition Process in Brazilian Accounting

Influence of IFRS on Earnings Manipulation: Evidence from the European Union

Financial Ratios (Accounting Ratios) and Survival of Microfinance Institutions in Ghana

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