International Earnings Comparability

The Impact of Introducing Estimates of the Future on International Comparability in Earnings Expectations

“…In fact, a number of investigations in this spirit have already been undertaken, including Ball, Kothari and Robin (2000), Land and Lang (2002), Ball, Robin and Wu (2003) and Beuselinck, Joos and Van der Meulen (2007). In the present study, however, the focus is on the financial reporting implications for decision-making.…”

“…Nobes and Kvaal, 2008) and the implications for reported earnings (Beuselinck, Joos and Van der Meulen, 2007) . Nobes and Kvaal (2008) Whilst the initial conclusions on IFRS implementation are that financial reporting has become more comparable, it is evident nevertheless that convergence is far from complete.…”

IFRS adoption in Spain and the United Kingdom: Effects on accounting numbers and relevance

“…Apart from that, many other researchers have focused on the effects on mandatory adoption of IFRS by first-time adopters [Jermakovich and Gornik-Tomaszewski (2006), Grudnitsky and Aubert (2008)]. They assess the effects of IFRS on qualitative characteristics of financial reporting [Beuselinck et al (2007), Horton et al (2008), Christensen et al (2008)] or the economic consequences of mandatory IFRS adoption, studying effects on capital markets [Armstrong et al (2007); Daske et al (2007) and Daske et al (2008)] and effects on analysts' forecasts [Byard et al (2008) and Bae et al (2008)] This paper contributes to previous literature about the effects and economic consequences of mandatory IFRS application assessing the impact of this implementation in accounting numbers and financial ratios and comparing two countries whose accounting systems have been considered very different.…”

Accounting Comparability and the Accuracy of Peer-Based Valuation Models

“…A growing body of evidence concludes that efforts to reduce international reporting differences through harmonization of accounting standards and improved regulation have enhanced the cross-border comparability of financial reporting outcomes (Brochet et al 2012, Christensen et al 2012, Ozkan et al 2012, Yip and Young 2012, DeFond et al 2011, Li 2010, Beuselinck et al 2007, Land and Lang 2002. We exploit cross-country convergence in financial reporting systems to examine the link between improvements in accounting comparability and the valuation performance the market-to-book pricing multiple computed using foreign peer firms selected on the basis of accounting realizations.…”

“…4 We utilize two aspects of international accounting convergence to develop complimentary tests of our prediction. In the spirit of Land and Lang (2002), our first test exploits incremental harmonization of reporting practices occurring among EU countries throughout our sample period (Beuselinck 2007, EUCE 2007, Street 2003. If accounting comparability affects multiple-based valuation accuracy through peer selection, then we expect to observe an improvement in valuation performance over time in response to incremental reporting convergence.…”