We address three research questions motivated by the recent ascent of International Financial Reporting Standards (IFRS) in Europe. First, analyzing determinants voluntary IFRS adoption publicly traded German firms during period 1998-2004, we find that size, international exposure, dispersion ownership, and IPOs are important drivers. Second, using results from this determinant model to construct propensity score-matched samples German-GAAP (HGB) firms, document significant differences terms...

We examine the effects of mandating provision fair value information for long-lived tangible assets on firms' asymmetry. Specifically, we investigate whether European real estate compulsory adoption International Accounting Standard 40 (IAS 40; Investment Property), which mandated investment property values in 2005, resulted reduced asymmetry across market participants. Using as a control group firms that voluntarily provided these prior to mandatory IAS 40, find exhibit larger decline...

ABSTRACT This paper examines pricing differences across recognized and disclosed fair values. We build on prior literature by examining two theoretical causes of such differences: lower reliability the information, and/or investors' higher related information processing costs. examine European real estate firms reporting under International Financial Reporting Standards (IFRS), which require that values for investment properties, our sample firms' key operating asset, either be balance sheet...

ABSTRACT This paper reports the results of a field experiment investigating how attributes carbon footprint information affect consumer choice in large dining facility. Our hypotheses and research methods were preregistered via Journal Accounting Research ’s registration‐based editorial process. Manipulating measurement units visualizations on food labels, we quantify effects consumers’ choices. Treated consumers choose less carbon‐intensive dishes, reducing their food‐related by up to 9.2%,...

Abstract Prior research documents that conditional conservatism, measured as the asymmetric timeliness of earnings reflecting bad vs. good news, varies with cross-country differences in institutional regimes. In this paper, we examine determinants conservatism and related attributes internationally. First, using panel data, investigate whether competing such unconditional income smoothing affect its international differences. We find these are predictably correlated conservatism. Second,...

ABSTRACT Beginning in 2005, the EU began requiring consolidated financial reports of publicly traded firms to be prepared accordance with EU-endorsed International Financial Reporting Standards (IFRS) an effort increase comparability information across Member States. While some expect IFRS reporting EU, others argue that is unlikely because implementation will vary conditional on national institutions and culture. We investigate cross-country earnings book values French German these two...

Climate exposure, a firm's financial risks and opportunities related to climate change, is increasingly recognized as driver of firm value. We study its reflection in statements. Whereas firms discuss exposure elsewhere (e.g., ESG reports), investors policymakers worry that the statements, bedrock corporate reporting, largely ignore it. To explore this emerging accounting phenomenon, we present three sets analyses. First, EU - unlike U.S. disclose impacts on key items such asset impairments...

The International Accounting Standards Board (IASB) faces a vast number of standard‐setting issues at all levels financial reporting. purpose this article is to explore the relevance academic research for reporting standard setting and role researchers in process. We contribute current debate surrounding Financial Reporting (IFRS) by drawing inferences from prior findings regarding IASB's efforts. After defining three broad categories questions, we how international heterogeneity its...

Abstract Meek and Thomas (2004) call for research on the continued relevance of 'rediscovered' dichotomous accounting classifications. We provide such evidence by examining how developments surrounding 'IAS Regulation' (1606/2002) influenced international differences in systems European Union. Since a sufficient time series actual post-2005 International Financial Reporting Standards (IFRS) reporting practice is not yet observable, we propose an initial re-classification based available to...

This paper reviews the empirical literature on determinants and decision usefulness of goodwill reporting. We structure our discussion around five guiding questions that reflect longstanding policy issues: recognition, initial subsequent measurement, disclosure, role governance monitoring. In addition to summarizing findings, we assess validity evidence. Our review indicates amounts, average, are associated with underlying economics combining firms but also shaped by managerial incentives...

This paper reviews research evidence on the usefulness of fair value measurement long-lived operating assets for financial reporting. Although economically material, these have been sidelined in current debate that largely centers assets, from which differ important respects. Our review provides several insights. First, is pervasive investment property, while nearly non-existent PP&E and intangible assets. Second, external appraisers help enhance decision values. Third, determinants...

Prior research documents that conditional conservatism, measured as the asymmetric timeliness of earnings reflecting bad versus good news, varies with cross-country differences in institutional regimes. In this paper, we examine determinants conservatism and related attributes internationally. First, using panel data, investigate whether competing such unconditional income smoothing affect its international differences. We find these are predictably correlated conservatism. Second, address...

This study investigates the effect of extreme uncertainty on disclosure behaviour by analyzing quality and quantity forward‐looking disclosures during global financial crisis pre‐crisis periods, controlling for other determinants behaviour. Prior research has struggled to distinguish between dimensions disclosures. Also, impact recent these attributes not yet been examined systematically. We address this gap exploiting unique setting German publicly traded firms. These firms must provide...

This study analyzes the 'real' effects of accounting standards in context defined benefit pension plans. Specifically, we examine impact IAS 19R, which increases expected pension-induced equity volatility by eliminating so-called 'corridor method', a smoothing device for actuarial gains and losses. Supported interview evidence, show that 19R leads firms to reconsider their investment decisions. Using matched samples treatment control firms, results from multivariate difference-in-differences...

Abstract Financial accounting, the core of corporate reporting, is often characterized as ‘language business’. Over last roughly 100 years, and using an evolving set theories, methods, data, scholarly work in this area has been contributing to our understanding language how improve it. This paper seeks, first, characterize field with a focus on its evolution German-speaking area, where, like elsewhere, normative research traditions interested improving practice have making way for positivist...

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ABSTRACT Established by the Global Engagement Task Force, this committee was charged with examining usage of journal rankings internationally. Through questionnaires, literature review, and discussions various international accounting organizations we gain a better understanding uses challenges rankings. Journal are used governments, professional bodies, university organizations, individual universities, schools, departments to evaluate quality quantity faculty research productivity. Rewards...

We study the reputational costs of 'targeted disclosure regulation' – mandates that pursue policy objectives outside securities regulators' traditional missions. This emerging type regulation empowers civil society to influence firms' actions through public pres-sure. SEC's extraction payments rule, which requires oil and gas firms publish details about their host governments. Consistent with for affected firms, our event-study results document rule affects firm value more negatively where...