12 The effect of Garcia, Lara et The effect of code The data consists of The Basu model is The asymmetric earnings al. 2004 law and common earnings data (EBIT). For used to measure the verifiability in management on law mechanisms the United Kingdom, degree of earnings in the code the asymmetric on the degree of France and Germany. The conservatism. Also a law countries timeliness of conservatism. sample period is from model is build to (Germany and earnings till 2000 assess the effects of France) is earnings significantly management decreasing. 13 The effect of Ball et al. 2000 In this research it Accounting income is The Basu model is Common law international is assumed that gathered from 1985 till used in this research countries are institutional the degree of 1995. The following to measure significantly more factors on conservatism in countries were conservatism. conservative than properties of the United examined; Japan, France, code law countries. accounting Kingdom is less The United States, The And the in the UK earnings conservative than United-Kingdom, the level of normally Australia, Germany and conservative expected in Canada. reporting was the common law lowest of the countries, hence common law still more countries. conservative than in code law countries.
12 The effect of earnings management on the asymmetric timeliness of earnings Garcia, Lara et al. 2004 The effect of code law and common law mechanisms on the degree of conservatism. The data consists of earnings data (EBIT). For the United Kingdom, France and Germany. The sample period is from till 2000 The Basu model is used to measure the degree of conservatism. Also a model is build to assess the effects of earnings management The asymmetric verifiability in earnings in the code law countries (Germany and France) is significantly decreasing. 13 The effect of international institutional factors on properties of accounting earnings Ball et al. 2000 In this research it is assumed that the degree of conservatism in the United Kingdom is less conservative than normally expected in common law countries, hence still more conservative than in code law countries. Accounting income is gathered from 1985 till 1995. The following countries were examined; Japan, France, The United States, The United-Kingdom, Australia, Germany and Canada. The Basu model is used in this research to measure conservatism. Common law countries are significantly more conservative than code law countries. And the in the UK the level of conservative reporting was the lowest of the common law countries.