Titulo: “Does Mandatory Adoption of IFRS contribute to the decline of the accrual anomaly?  Evidence from Germany

Autores: Steve Wen-Jen Lin


This study examines whether the decline of the accrual anomaly that occurs in the U.S. between 2004 and 2008 (Green, Hand, and Soliman, 2011) also occurs outside the U.S.,if so, whether improved accounting quality and information environment following the adoption of International Financial Reporting standards (IFRS) worldwide contributes to the decline of the accrual anomaly. Using the unique setting in Germany between 2002 and 2008, we find that the accrual anomaly exists between 2002 and 2004 but disappears between 2006 and 2008. Further analysis shows that the accrual anomaly only exists for German firms using IFRS and U.S. Generally Accepted Accounting Standards (U.S. GAAPP) between 2002 and 2004 although the anomaly disappears for all German firms following the mandatory switch to IFRS in 2005. We also find that the decline of the accrual anomaly in Germany is more pronounced for firms who benefit the most from IFRS adoption, measured by an equally weighted quality score based on the improvements in analysts following, forecast accuracy, forecast dispersion, and earnings management. Overall, this study provides evidence that the adoption of IFRS at least partially contributes to the decline of the accrual anomaly between 2006 and 2008 in Germany. Our findings should be of interest to capital market regulators, accounting regulators, investors, and corporate managers.

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Fecha y hora: 31 de Marzo de 2017 | 13:00 hrs
Lugar: Sala P307 Edificio Placa (Diagonal Paraguay # 257, Santiago, Chile)

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