The accrual anomaly under different accounting standards - Lessons learned from the German experiment

  • Kaserer C
  • Klingler C
  • 49

    Readers

    Mendeley users who have this article in their library.
  • 21

    Citations

    Citations of this article.

Abstract

Several studies document that investors systematically overreact to accrual-based accounting information. We address the question to what extent this accrual anomaly is related to different accounting standards. We provide empirical evidence that the accrual anomaly is also present in Germany. However, this anomaly seems mainly to be driven by firms presenting their financial statements under IFRS or US-GAAP, while the anomaly is unlikely to exist for those firms complying with German GAAP. It is argued that introducing true and fair view accounting, like IFRS, that relies on difficult-to-verify information, may not be suitable to improve accounting information quality in the context of a weak corporate governance system.

Author-supplied keywords

  • Accounting regulation
  • Accounting standards
  • Accrual anomaly
  • Conservative accounting
  • Corporate governance
  • Earnings persistency
  • Empirical accounting research
  • German GAAP
  • IFRS/IAS
  • True and fair view accounting
  • US-GAAP

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free