Ria

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)
IFRS 15 Revenue from Contracts
with Customers. IFRS. May 2014.
http://www.ifrs.org/CurrentProjects/IASB-Projects/RevenueRecognition/Documents/IFRS15/Revenue-from-ContractsProject-summary-FeedbackStatement-May-2014.pdf. Feb 28

The Effect of IFRS on Earnings

Quality in a European Stock
Market: Evidence from France.
Chiha, H. & Trabelsi, N. & Hamza,
S. 2013. Interdisciplinary Journal of
Research in Business. Vol. 2,
Issue. 12.
http://www.idjrb.com/articlepdf/articl
e2124.pdf. Feb 28 -may be a
mother article

Market Reaction to the Adoption of

IFRS in Europe. Armstrong, C. &
Barth, M. & Jagolinzer, A. & Riedl,
E. Sep 2008. Harvard Business
School.
http://www.hbs.edu/faculty/Publicati
on%20Files/09-032.pdf, Feb 28

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

Findings

described the reason for the new

standard, the framework,
requirements and the changes that
it would bring aboutpresented the
feedback of affected persons and
the boards response

Earnings quality is examined by

measuring the strength of the
association between earnings and
firm market value (regression)
model used in this study draws on
the work of Burgstahler and Dichev accounting information quality has
been improved by the increase of
(1997), Barth et al. (1998) and
Zhang (2000) who considered that the association degree
the carrying value of the business
and profit are two complementary
variables that explain the share
value.

examines the impact of IFRS

adoption on earnings quality for a
sample of listed companies in a
European stock market for 9
periods

info found in fsbvpseps

examines the European stock

market reaction to sixteen events
associated with the adoption of
International Financial Reporting
Standards (IFRS) in Europe

more positive reaction for firms with

lower quality pre-adoption
information, which is more
pronounced in banks, and with
higher pre-adoption information
info quality factorstandards
asymmetry, consistent with
appliedExchanges, the number of event-study research designbase investors expecting net information
exchanges on which the firm is
our tests on European firms threequality benefits from IFRS
listed during the event year;
day value-weighted marketSize, the natural logarithm of the
adjusted returns construct portfolio adoption.reaction is less positive for
firms domiciled in code law
firms prior end of year market
event returns by value weighting
countries, consistent with investors
value of equitytype of
each firms return based on the
concerns over enforcement of IFRS
bankturnoverpercentage of shares firms equity market value at the
in those countries.positive reaction
held by shareholdersHerf ranges
end of the most recent quarter prior to IFRS adoption events for firms
from zero to one, with higher values to the event
with high quality pre-adoption
indicating that within-industry sales t-testcross-sectional analysis
information, consistent with
are concentrated in fewer firms
investors expecting net
convergence benefits from IFRS
adoptionresults suggest that
investors in European firms
perceived net benefits

Ria

Bibliography Details (title. author. Summary of Abstract/ Contribution

Data Needed (distinguish the
year. volume no etc. url. date
Methodology/Statistical Technique
to the Topic
dependent & independent variables)
retrieved)
IFRS 15 the new revenue
recognition standard Impact on
mining and metals entities. Ernst &
Young. September 2014.
examines the impact of ifrs 15 on
qualitative
qualitative
http://www.ey.com/Publication/vwL mining and metal entities
UAssets/EY-Devel-MM-RevRecSept2014/$FILE/EY-Devel-MMRevRec-Sept2014.pdf. March1
IFRS Industry Insights on the
impact of IFRS 15. Deloitte. 2014.
http://www.iasplus.com/enus/collections/topics/revenue/ifrsinsights-revenue. March 1

A Returns-Based Representation of
Earnings Quality. Ecker, F. &
Francis, J. & Kim, I. & Olsson, P. &
Schipper, K. Nov 2005.
https://faculty.fuqua.duke.edu/~jfran
cis/bio/Ecker%20et%20al.%20%5b
November%202005%5d.pdf. March
1

discusses the changes and impact

qualitative
of IFRS 15 to various industries

qualitative

examined the properties of a

returns-based representation of
earnings quality, estimated from
firm specific asset pricing
regressions augmented by an
earnings quality mimicking factor

coefficient on the earnings quality

factor (the e-loading) captures the
sensitivity of the firms returns to
earnings quality in a given year or
quarter, analogous to beta as a
measure of the sensitivity of returns
to market movementsestimated
using either a firm-specific timeseries of annual data or industry
cross-sectionsDechow and
Dichevs accruals quality metric to
capture earnings qualityassign
firms to AQ deciles using a dynamic
portfolio technique then calculate
the average daily return for each
decile correlate AQfactor with the
returns of any firm to determine that
firms exposure to poor earnings
quality, much like we correlate a
firms returns with the market risk
premium to obtain a measure of its
exposure to market risknext
estimate firm-year e-loadings for
the Returns Sample

info found in fs

Findings

returns-based measures of
earnings quality are most
appropriate in research settings
that analyze changes in financial
reporting quality, either because of
a required change in reporting or
because of a voluntary reporting or
disclosure decisioninvestors
perceptions of earnings quality are
rational document that e-loadings
are a reliable returns-based
representation of earnings quality
as measured by accruals quality

Ria

Bibliography Details (title. author. Summary of Abstract/ Contribution

Data Needed (distinguish the
year. volume no etc. url. date
Methodology/Statistical Technique
to the Topic
dependent & independent variables)
retrieved)
ANALYSIS: IFRS 15 REVENUE
RECOGNITION WILL NEVER BE
THE SAME AGAIN. Accountancy
SA. July 2014.
discusses the implications of the
qualitative
qualitative
http://www.accountancysa.org.za/a new standard
nalysis-ifrs-15-revenue-recognitionwill-never-be-the-same-again/.
March 1
define earnings quality as the
reduction of the markets
uncertainty about the firms terminal
value due to the earnings report
and compare this measure with
Earnings Quality Metrics and What
value relevance, persistence,
They Measure. Ewert, R. &
operating risk private information of predictability, smoothness, and
discusses and evaluates the
Wagenhofer, A. Sep 2010.
accrual qualityessentially model a
usefulness and appropriateness of the manager about the operating
https://www.kellogg.northwestern.e commonly used earnings metrics
risk.accounting riskmanagement
pure exchange economy with one
du/accounting/papers/Ewert.pdf.
incentives
risky asset (the firm)accounting
March 1
system signalscloser the behavior
of a particular metric is in line with
that of EQ upon a variation of a
determining factor of earnings
quality, the more appropriate is its
use in empirical studies
Earnings Quality: Its Time to
Measure and Report. Bellovary, J.
& Giacomino, D. & Akers, M. Nov presented a brief and general
2005. The CPA Journal.
overview on earnings quality
http://www.nysscpa.org/cpajournal/
2005/1105/essentials/p32.htm.
March 1

qualitative

qualitative

Findings

each metric captures different

effects, but some of them, including
value relevance and persistence,
are closely related to our earnings
quality measureDiscretionary
accruals are problematic as their
behavior depends on specific
circumstancesprovide insights into
regulatory changes and guidance
for selecting earnings quality
metrics in empirical tests of
earnings quality

Ria

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

examine whether the adoption of

principles-based IFRS by Spanish
companies has increased or
decreased the scope for
Earnings Management under IFRS discretionary accounting practicesand PGC. Tort, L. 2013.
earnings management (EM) in
http://www.accid.org/revista/docum comparison to rules-based GAAP qualitative
ents/Earnings_Management_under determine which firms features and
_IFRS_and_PGC.pdf. March 1
country factors may explain the
accounting discretion observed
before and after IFRSshowed
measurements of earnings
management

qualitative

Findings

variations in EM might be due to

some room for manipulation under
IFRS when compared with local
standards

Mariah

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

first group of earnings quality

measures focus on is indicative of
sustainable, repeatable, and
backed-by-cash flows earnings.
The second group of earnings
quality measures in this paper
captures the value relevance of
earnings because it is a direct
proxy for earnings qualityThe last
group of earnings quality measures
includes earnings smoothness,
conservatism, and timeliness

earnings quality of Canadian firms,

on average, improves following the
adoption and the improvements are
mostly driven not by U.S. adopters
but by IFRS adopters, suggesting
that IFRS has a positive impact on
earnings quality

-This study attempts to explore the

relationship between accounting
standards and the qualitative
characteristics of earnings as
operationalized in the previous
theoretical and empirical papers. used eight proxies: value
relevance, predictability,
persistence, timeliness, timely loss
recognition, smoothing, managing
earnings toward targets and
a sample of 1,901 listed firms from accruals quality.
Australia and European countries -focus on the earnings quality of
that adopted IFRS for fiscal years
1,901 publicly listed companies in
ending in December, 2005. The
17 countries coming from Europe
analysis covers the period
and Australia, before and after the
20012010, split into two subIFRS adoption in 2005. This
periods (20012004 and
analysis is designed to address the
20052001) in order to reflect the question as to which of two
earnings quality before and after
accounting standards (IFRS or
the application of IFRS
GAAP) is preferable
- present briefly each earnings
quality properties along with a
description of the empirical models.
In the estimation of each models,
tehy applied the Breush-Pagan test
in order to control for
heteroscedasticity and the
Wooldrigde test in order to control
for auto-correlation of the standard
error.

-ceteris paribus, the mandatory

IAS/IFRS adoption improves the
predictability of cash flows and
future earnings, the persistence
and the timeliness
-IFRS earnings are not more
conservative than earnings based
on local GAAP regulation
-nable to support systematic
evidence that IFRS results enhance
earnings attributes quality for
mandatory adopters

-examines the effects of the IFRS

adoption on earnings quality of
Effects of IFRS adoption on
1245 Canadian firms
earnings quality: Evidence from
- analyze the effects IFRS adoption
Canada
on earnings persistence, earnings
Hai Q. Ta
predictability, persistence of
June 2014
earnings components, cash flow
file:///C:/Users/samsung/Downloads predictability, accruals quality,
/OBJ%20Datastream.pdf
value relevance, earnings
smoothness, conservatism, and
timeliness.

The Effects Of Mandatory IASIFRS

Regulation On The Properties Of
Earnings Quality In Australia And
Europe
Bahloul Jaweher & Ben Arab
Mounira
European Journal of Business and
Management
ISSN 2222-1905 (Paper) ISSN
2222-2839 (Online)
Vol.6, No.3, 2014

verifying whether the IFRS

regulation produces better
earnings quality than local GAAP
regulation for listed companies in
17 countries from Australia and
Europe

Findings

Mariah

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)
IASB and FASB issue new revenue
recognition standard IFRS 15
http://www.ey.com/Publication/vwL
UAssets/EY-Devel80-RevenueMay2014/$FILE/EY-Devel80Revenue-May2014.pdf

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)
discussed the background, scope,
effective date, the 5-step model and
other guidance

Revenue recognition: finally, a

Standard approach for all
investor PerspectivesJune 2014
Patricia McConnell
discussed changes, sectors most
http://www.ifrs.org/Investorlikely to be affected, and disclosure
resources/2014-Investorrequirements
Perspectives/Documents/InvestorPerspective-IFRS-15-June2014.pdf
Understanding earnings quality: A
review of the proxies, their
determinants and their
consequences Patricia Dechow
Weili Ge Catherine Schrand
September 2009
http://mitsloan.mit.edu/jae/pdf/Sessi
on_I_Dechow_Ge_Schrand.pdf

reviewed its proxies, determinants

and its consequences
mej mahaba siya 175 pages about
earnings quality

Impacts on the construction

industry of the new revenue
standard
September 2014
http://www.kpmg.com/CN/en/Issues -discussed about critical judgments
AndInsights/ArticlesPublications/Ne at contract inception, contract life
wsletters/Firstcycle, and disclosures
Impressions/Documents/FirstImpressions-O-201409-Impacts-onthe-construction-industry-of-thenew-revenue-standard.pdf

Findings

Mariah

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)
Earnings Quality Measures and
Excess Returns
PIETRO PEROTTI AND ALFRED
WAGENHOFER
Journal of Business Finance &
Accounting
Volume 41, Issue 5-6, Article first
published online: 18 APR 2014
http://onlinelibrary.wiley.com/doi/10.
1111/jbfa.12071/pdf

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

examines how commonly used

earnings quality measures fulfill a
key objective of financial reporting,
i.e., improving decision usefulness
for investors.

The sample consists of US nonfinancial firms drawn from

Compustat and CRSP over
a 20-year period from 1988 to 2007

all German corporations whose

common
International Financial Reporting
stock8 is listed in the Composite
Standards and Earnings Quality:
German stock index (CDAX) The Myth of Voluntary vs.
Mandatory Adoption
revisit evidence whether incentives sample period starts in
1998 as due to the KapAEG
NINA GUENTHER
or IFRS drive earnings quality
publicly traded German
BERNHARD GEGENFURTNER
changes, analyzing a
CHRISTOPH KASERER
large sample of German firms in the corporations were allowed to
prepare
ANN-KRISTIN ACHLEITNER
period from 1998 to 2008
consolidated financial statements
June 2 2009
under international accounting
http://papers.ssrn.com/sol3/papers.
standards (IFRS or US
cfm?abstract_id=1413145
GAAP) instead of German GAAP
(HGB) for the first time
SOFTWARE IFRS 15: REVENUE
FROM CONTRACTS WITH
CUSTOMERS
BDO
discussed commercial effects and
http://www.bdointernational.com/Se other issues regarding software
rvices/Audit/IFRS/IFR-Bulletins2011/IFRB%202014/2014%20006.
pdf
IFRS 15: Implementation
challenges 29 July 2014 Christoph
Cruss Partner, PwC Germany
http://www.pwc.ru/ru/events/2014/a
ssets/2-gruss-eng.pdf

discussed Revenue Impacts the

Entire Organization, Impact Study
of various Industries and Key
aspects to consider implementing
IFRS 15

-stock-price-based measure for

assessing the quality of earnings
quality measures
-calculate eight EQ measures

Findings

-negative association between the

value of an earnings
quality measure and the absolute
value of excess returns
-accruals measures, and
particularly accruals quality, are
preferable proxies for earnings
quality

voluntary and mandatory adopters

differ distinctively in terms of
-logistic regression to assess the
essential firm characteristics and
impact of ownership characteristics that size, leverage, age, bank
on
ownership and ownership
voluntary IFRS adoption
concentration influenced the
-analyze the impact of ownership
decision to voluntarily adopt IFRS.
and firm characteristics on the
However, regardless of the decision
timing of
to voluntarily adopt IFRS,
IFRS adoption using the binary
conditional conservatism increased
logistic regression
under IFRS for both groups of
-also used different measures to
adopters, while evidence does not
analyze effect on earnings qulaity suggest an increase in value
relevance under IFRS.

Kim

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)

How have the IAS/IFRS adoption

affected earnings management in
EU? The effect of the
absence/divergence of regulation
and of legal enforcement.
Alessandro Mechelli and Riccardo
Cimini. n.d.
http://www.virtusinterpress.org/IMG/
pdf/Riccardo_Cimini_Alessandro_M
echelli_paper.pdf. February 28,
2015.

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

Spearman's rank correlation

This paper aims to investigate the
coefficient
effect produced by the adoption of Independent: IFRS Adoption
IAS/IFRS on earnings management Dependent: Earnings Management Standard Deviation
in European Union.
Median

The IFRS Adoptions Effect on

Accounting Quality in Sweden. Mari
Paananen. 2008.
http://www.adoptifrs.org/uploads/S
weden/The%20IFRS%20%20Effect
%20on%20Accounting%20Quality
%20in%20Sweden.pdf. February
28, 2015.

The paper studies whether the

quality of financial reporting has
increased in Sweden after the
adoption of IFRS in 2005.

The Impact of International

Financial Reporting Standards
(IFRS) Adoption on the Accounting
Quality of Listed Companies in
Kenya. Erick Outa. 2011.
http://www.macrothink.org/journal/in
dex.php/ijafr/article/viewFile/1096/9
05. February 28, 2015

This study seeks to establish if the

adoption of International Financial Independent Variable: IFRS
Reporting Standards (IFRS) in
Adoption
Kenya has been associated with
Dependent Variable: Earnings
higher accounting quality for listed Quality
companies.

Independent Variable: IFRS

Adoption
Dependent Variable: Accounting
Quality

A closer look at the new revenue

recognition standard. 2014.
http://www.ey.com/Publication/vwL
UAssets/Applying_IFRS:_A_closer Requirements for the new adoption Revenue Recognition Accounting
_look_at_the_new_revenue_recogn of IFRS15 (Implementation Guide) Standards -- Scope, Evaluation of
Impact
ition_standard_(June_2014)/$FILE/
Applying-Rev-June2014.pdf.
February 28, 2015.

Pearson correlation, earnings

smoothing (they used Share Price
as measurement of Accounting
Quality.)

Findings

They observed that the IAS/IFRS

first-time adoption produced
different effects on earnings
management depending on the
countries analysed and the kind of
earnings management investigated.
Our findings also show a positive
and significant relation between the
reduction of the
earnings management and the
level of the legal enforcement of
each country.
Results suggest that there has
been no increase in financial
reporting quality over the two first
years after the adoption. On the
contrary, I find some indications of
a decrease in financial reporting
quality measured as smoothing of
earnings, timely loss recognition,
and value relevance.

Critiques of IFRS such as Barth et

al. (2007:7) and Bartov et al.
(2005:114) argue that there is no
Earnings Management and STATA conclusive evidence that standards
have contributed to improvements
in accounting quality.

----

----

Kim

Bibliography Details (title. author. Summary of Abstract/ Contribution

Data Needed (distinguish the
year. volume no etc. url. date
Methodology/Statistical Technique
to the Topic
dependent & independent variables)
retrieved)
New Revenue Recognition
Accounting StandardLearning
and Implementation Plan. 2015.
http://www.aicpa.org/interestareas/f
---rc/accountingfinancialreporting/reve Timeline for implementation guide. New Revenue Recognition Account ---nuerecognition/downloadabledocu
ments/2014-09_liplan.pdf. February
28, 2015.

Impact of Mandatory IFRS Adoption

on Conditional Conservatism in
Europe. Andre, Filip, and Paugam.
2013.

The paper studies the effect of the

mandatory adoption of IFRS in
Europe in 2005 on conditional
conservatism.

Mandatory IFRS Adoption and

Accounting Conservatism. Ke,
Young. Zhuang. 2013.

An important point in their study is

that they avoid the common
criticisms of the DT measure by
comparing the difference in the DT
measure under local accounting
standards and IFRS for the same
firm in the same IFRS reconciliation
year.

Independent Variable: IFRS

Adoption
Dependent: Conservatism

Independent Variable: IFRS

Adoption
Dependent Variable: Accounting
Conservatism

Their hypothesis is that privateEarnings quality in U.K. private

company financial reporting
firms: Comparative loss recognition nevertheless is lower quality due to For our paper-->Earnings Quality
timeliness. Mond Rahmat. 2013.
different market demand, regulation
notwithstanding.

Findings

To capture conditional
conservatism, we use three
measures: the Basu (1997)
measure, the Khan and Watts
(2009) measure, and a measure
controlling for potential shifts in
unconditional conservatism and
cost of capital after the adoption of
IFRS.

Our results inform standard-setting

stakeholders about a potential
negative effect of the greater
flexibility permitted by IFRS on a
key dimension of accounting
quality. They are important for
European regulators and standard
setters as they review the cost and
benefits of IFRS.

Standard cross-sectional
regression model

For financial firms domiciled in

strong legal enforcement countries,
we find some weak evidence that
the mandatory IFRS adoption
increases the degree of accounting
conservatism. In contrast, for
financial firms domiciled in weak
legal enforcement countries, we
find that the mandatory IFRS
adoption results in a decrease in
accounting conservatism.

Time-series, linear regression

Our principal result is that timely

loss recognition is substantially less
prevalent in private
companies than in public
companies, despite the groups
facing equivalent regulatory rules.

Kim

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)

The Effect of IFRS Adoption on the

Financial Reports of Local
Government Entities. Ahmed and
Alam. 2012. Australasian
Accounting, Business and Finance
Journal Volume 6 | Issue 3.

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

This paper aims to analyse the

changes in accounting surplus
(loss), equity and assets, and
liabilities as a result of accounting Independent Variable: IFRS
policy changes from the Australian Adoption on Local Government
Accounting Standards (AAS) to the Entities
International Financial Reporting
Standards (IFRS) in Australian local
government entities.

Malta: New Rules For Revenue

Recognition - Whats The Impact
On Your Business? Jonathan
Dingli. 2014.
It observes what would be the
http://www.mondaq.com/x/329268/ probable impact of IFRS 15 to the
Accounting+Standards/New+rules+ business.
for+revenue+recognition+whats+th
e+impact+on+your+business.
February 28, 2015.

Independent: IFRS15 adoption

Dependent: Business in General

10

Findings

The results show some differences

between two sets of accounts
prepared under these different
accounting standards. While the
average surplus (loss) of local
councils has decreased, their
equities, assets and liabilities have
Using the reconciliation notes
disclosed by 117 local government increased, with no major significant
changes in their overall financial
entities
position, except for liabilities. These
results indicate the possible
consequences of the adoption of
IFRS by local government entities
in other countries on performance
indicators who have or are yet to
implement these standards.

-----

Entities may also need to

communicate with investors and
other stakeholders who will want to
understand the impact of the new
standard on the overall business.
Areas of interest may include the
effect on financial results, the costs
of implementation, any proposed
changes to business practices, and
the transition approach selected.

Eunice

Bibliography Details (title. author.

year. volume no etc. url. date
retrieved)

Summary of Abstract/ Contribution

Data Needed (distinguish the
Methodology/Statistical Technique
to the Topic
dependent & independent variables)

The impact of IFRS adoption on the

value relevance of book value
and earnings
by Peter Clarkson et al

investigate the impact of IFRS

adoption in Europe and Australia on
price per share as at the Balance
the relevance
Sheet date; BVPS ; EPS
of book value and earnings for
equity valuation.

The role of revenue recognition in

performance reporting by Alfred
Wagenhofera

examines revenue and profit or loss

recognition and how these
measures provide financial
n/a
information about companies
performance

Do accounting standards matter?

the effect of the mandatory
An exploratory analysis of earnings analyze
introduction of IFRS standards on income before extraordinary items
management before and after IFRS earnings quality
(IBEX), total assets and sales
adoption

Revenue Recognition, Earnings

Management, and Earnings
Informativeness in the
Semiconductor Industry

examines the implications of

revenue recognition methods for a
sample of
semiconductor firms; examines the
revenue recognition methods of
Sell-Through and Combo
semiconductor firms and their
implications for
earnings management and
earnings informativeness.

whether accounting complexity in

Accounting complexity,
the area of revenue recognition
misreporting,and the consequences increases the probability of
of misreporting
restating reported revenue.

employ a same firm year

research design

IFRS enhances comparability

n/a

striving for a conceptually

consistent standard is undesirable
because the economic
characteristics of earnings cycles
differ across firms and so does the
usefulness of information.

threshholds approach- test the

loss avoidance threshold by
pervasiveness of earnings
analyzing the distribution of income management did not decline after
before extraordinary
the introduction of IFRS
items

logistic regression model

dependent variable
is one if the firm restated revenue
and zero if the firm restated
logistic regression model;
something other than
design and matchedrevenue; Control variables fall into restatement
sample design
three categories: (1) value
relevance, (2) governance, and (3)
other.

11

Findings

earnings are more informative (the

earnings-returns association is
stronger) for firms that defer
revenue recognition until products
are
resold to end-customers

revenue recognition complexity

increases the probability of
revenue restatements, and these
restatements are the
result of both intentional and
unintentional misreporting

Eunice

The Role of Revenue in Firm

Valuation

role of revenue in valuing firmswhether the ability

of revenue to convey information
beyond earnings is pervasive or
limited to situations
where earnings are perceived to
be less informative

crosssectional regression model;

value relevance and information
tests of significance
content; sales, earnings, and stock on the estimated coefficients are
price data;
based on the time-series
distribution

role of revenue in valuation is

pervasive

sample of consolidated statements

from companies
listed in the German capital
OLS regressions
market; data about stock
performance

IFRS reporting potentially

decreases earnings
quality on average; but also that
reporting incentives appear to have
lower effects on earnings quality in
IFRS
statements than in GGAAP
statements. Thus, IFRS may lead to
more homogenous earnings quality
across
firms.

Improving earnings quality: The

effect of reporting incentives and
accounting standards

different effects on earnings quality

of accounting standards and
reporting incentives for
Germany

The Effect of IFRS Adoption and

Investor Protection on Earnings
Quality Around the World

examines the effects of mandatory Dependent variables-Earnings

IFRS adoption and investor
quality
protection on the
Independent variables- Investor
quality of accounting earnings
protection

Earnings quality refers to the ability

of reported earnings to reflect the
company's true earnings, as well as
the usefulness of reported earnings
to predict future earnings. Earnings
quality also refers to the stability,
persistence, and lack of variability
in reported earnings

12

discretionary accruals as the

measure of earnings quality;

results suggest that

earnings quality increases for
mandatory IFRS adoption when a
country's investor protection regime
provides stronger protection.