involved in the transition to IFRS October 2005 is used. technical covenant violation. Firms from U.K. GAAP may affect the expect higher costs of contract distribution of wealth between violations. Consequently through managers and shareholders in the contract violations the introduction U.K. The primary topic studied is the of IFRS will in addition have an effect of adopting IFRS on covenant indirect negative effect upon the violation. use of earnings management Tendeloo and The object of this study is to 636 firm-year observations of Cross-sectional Jones Model to IFRS-adopters do not present Vanstraelen (2005) investigate whether voluntary German firms relating to the estimate discretionary accruals different earnings management adoption of IFRS is associated with period 1999-2001 behavior compared to companies lower earnings reporting under German GAAP. Management among German firms. Voluntary adopters of IFRS in Germany cannot be associated with lower levels of earnings management. Christensen, Lee and To test the effect of the introduction The final sample consists of 177 Regression model (developed Voluntary adoption of IFRS is Walker (2008) of IFRS on the use of earnings firms that did not adopt IFRS until by Barth et al. 2008) estimating associated with decreased earnings management among German firms 2005, and 133 firms that adopted the effects of independent management and more timely loss who voluntarily or mandatorily IFRS voluntary before 2005. variables and control variables recognition. In stark contrast the adopted IFRS on change in net income of the study finds no evidence of such firms. accounting quality improvements for firms that are mandatorily forced to adopt IFRS. Paananen and Lin The main objective of this study is to The sample consists of 107 Variability of the change in net Accounting quality has not (2008) examine and compare the quality of German firms reposting in three income scaled by total assets improved but worsened over time. accounting numbers under IAS different time periods. Firms method developed by Barth et The main cause of this during 2000-2002 reporting under IAS (2000-2002); al. (2008) development is believed to be with those under IFRS during Voluntary reporting under IFRS driven by changes of the standard (2003-2004); mandatory of IFRS and not by new adopters. reporting under IFRS Lippens (2010) The main object of this study is to Based on a sample of listed firms Modified Jones Model The results indicate that both
involved in the transition to IFRS from U.K. GAAP may affect the distribution of wealth between managers and shareholders in the U.K. The primary topic studied is the effect of adopting IFRS on covenant violation. October 2005 is used. technical covenant violation. Firms expect higher costs of contract violations. Consequently through contract violations the introduction of IFRS will in addition have an indirect negative effect upon the use of earnings management Tendeloo and Vanstraelen (2005) The object of this study is to investigate whether voluntary adoption of IFRS is associated with lower earnings Management among German firms. 636 firm-year observations of German firms relating to the period 1999-2001 Cross-sectional Jones Model to estimate discretionary accruals IFRS-adopters do not present different earnings management behavior compared to companies reporting under German GAAP. Voluntary adopters of IFRS in Germany cannot be associated with lower levels of earnings management. Christensen, Lee and Walker (2008) To test the effect of the introduction of IFRS on the use of earnings management among German firms who voluntarily or mandatorily adopted IFRS The final sample consists of 177 firms that did not adopt IFRS until 2005, and 133 firms that adopted IFRS voluntary before 2005. Regression model (developed by Barth et al. 2008) estimating the effects of independent variables and control variables on change in net income of the firms. Voluntary adoption of IFRS is associated with decreased earnings management and more timely loss recognition. In stark contrast the study finds no evidence of such accounting quality improvements for firms that are mandatorily forced to adopt IFRS. Paananen and Lin (2008) The main objective of this study is to examine and compare the quality of accounting numbers under IAS during 2000-2002 with those under IFRS during The sample consists of 107 German firms reposting in three different time periods. Firms reporting under IAS (2000-2002); Voluntary reporting under IFRS (2003-2004); mandatory reporting under IFRS Variability of the change in net income scaled by total assets method developed by Barth et al. (2008) Accounting quality has not improved but worsened over time. The main cause of this development is believed to be driven by changes of the standard of IFRS and not by new adopters. Lippens (2010) The main object of this study is to Based on a sample of listed firms Modified Jones Model The results indicate that both