Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086996 | Journal of Accounting and Economics | 2006 | 29 Pages |
Abstract
We compare US firms' earnings with reconciled earnings for cross-listed non-US firms. Non-US firms' earnings exhibit more evidence of smoothing, greater tendency to manage towards a target, lower association with share price and less timely recognition of losses. Firms from countries with weaker investor protection show more evidence of earnings management, suggesting that SEC regulation does not supplant the effect of local environment. There is more evidence of earnings management for firms reconciling to US GAAP than for those preparing local accounts in accordance with US GAAP, but both show more evidence of earnings management than US firms.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Mark Lang, Jana Smith Raedy, Wendy Wilson,