of the methods. Both studies assume a substitution effect of the use of accruals-based earnings management to the use of real earnings management. The conclusion of both studies is that this assumption is valid; the introduction of IFRS creates a substitution effect of the accruals-based to the real earnings management. Because of connection with this research, these findings are indicative for this research. However, the different circumstances the researches have been performed in have their influence on the outcome. No research that has been presented before is similar to this research, because of factors like investor protection by which French Civil Law differ from other types of law countries which will create differences in the outcomes. These factors will be commented in the next section. 4.3 French Civil Law factors Before researches about the influence of the introduction of IFRS on the use of earnings management have been commented, next the focus will be on the distinction of this research compared to these earlier conducted studies. The results of a research may be influenced by a country-specific factor or a common factor of more than one country. In this research, the focus is on countries with the French Civil Law; this type of law has its own characteristics but in addition the countries that are labelled as French Civil Law differ from each other. In order to understand the characteristics of French Civil Law countries, the general characteristics will be presented, but in addition the countries will be commented separately when they do not comply with the general characteristic. First the distinction between the civil and the common law. The civil law uses statutes and comprehensive codes to order legal material. Currently three common families of law within the exist: French, German and Scandinavian (La Porta et al. 1998, p 1118). This research focusses on the French Civil Law family including the countries The Netherlands, Belgium and France. The common law does not use the contributions of scholars to shape the law, but used judges to resolve disputes. Examples of countries that use this type of law are The United States of America, Canada, Australia and India. When comparing these families, the Scandinavian and German law create average shareholders and creditors’ protection in which the French civil law provides the weakest protection. Before some differences between the different civil law countries have been described, because of the use of this type of countries in this research, next the characteristics of the French civil law will be further explained.
of the methods. Both studies assume a substitution effect of the use of accruals-based earnings management to the use of real earnings management. The conclusion of both studies is that this assumption is valid; the introduction of IFRS creates a substitution effect of the accruals-based to the real earnings management. Because of connection with this research, these findings are indicative for this research. However, the different circumstances the researches have been performed in have their influence on the outcome. No research that has been presented before is similar to this research, because of factors like investor protection by which French Civil Law differ from other types of law countries which will create differences in the outcomes. These factors will be commented in the next section. 4.3 French Civil Law factors Before researches about the influence of the introduction of IFRS on the use of earnings management have been commented, next the focus will be on the distinction of this research compared to these earlier conducted studies. The results of a research may be influenced by a country-specific factor or a common factor of more than one country. In this research, the focus is on countries with the French Civil Law; this type of law has its own characteristics but in addition the countries that are labelled as French Civil Law differ from each other. In order to understand the characteristics of French Civil Law countries, the general characteristics will be presented, but in addition the countries will be commented separately when they do not comply with the general characteristic. First the distinction between the civil and the common law. The civil law uses statutes and comprehensive codes to order legal material. Currently three common families of law within the exist: French, German and Scandinavian (La Porta et al. 1998, p 1118). This research focusses on the French Civil Law family including the countries The Netherlands, Belgium and France. The common law does not use the contributions of scholars to shape the law, but used judges to resolve disputes. Examples of countries that use this type of law are The United States of America, Canada, Australia and India. When comparing these families, the Scandinavian and German law create average shareholders and creditors’ protection in which the French civil law provides the weakest protection. Before some differences between the different civil law countries have been described, because of the use of this type of countries in this research, next the characteristics of the French civil law will be further explained.
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