The Determinants of Accounting Comparability around the World

• In Event: Potpourri I

Abstract

In this paper, we investigate country-level firm-level determinants of within-country accounting comparability for 16 European Union countries and the U.S. in the post mandatory International Financial Reporting Standards (IFRS) adoption period. We hypothesize and find that firms in countries with rule-based accounting, higher quality public auditor work environments, stricter enforcement of accounting standards and more reliance on equity-market financing have higher comparability with each other. At the firm level we also hypothesize and find that firms which are larger, engage in less earnings management, and have lower return on asset volatility have higher comparability with each other.

Authors

• Jonathan Ross, Binghamton University

• Linna Shi, University of Cincinnati

• Hong Xie, University of Kentucky