scholarly journals Earnings Quality, Earnings Management, and Cross-listings: Evidence from French Firms

2015 â—½  
Vol 01 â—½  
pp. 13
Author(s):  
Trabelsi Slaheddine â—½  
Keyword(s):  
United States â—½  
United Kingdom â—½  
Earnings Management â—½  
Financial Reporting â—½  
Earnings Quality â—½  
The United States â—½  
Book Value â—½  
Cross Listing â—½  
Timely Loss Recognition

This article examines the earnings quality of French firms cross-listed in the United States and United Kingdom, and non-cross-listed French firms. We examined the quality of financial reporting based on measures of earnings management, timely loss recognition (TLR), and price-earnings association. We found that both cross-listings and non-cross-listings show significant earnings smoothing activities and tend to use accruals to manage earnings, and are not timely in loss recognition. We surmise that cross-listing in the United States or United Kingdom has not changed the accounting choices of French cross-listing firms relative to firms that are not cross-listed. However, our findings show that the market considers earnings and book value data of cross-listing firms to be more informative than those of non-cross-listing firms.

Accounting Quality, Earnings Management and Cross-Listings: Evidence from China

2012 â—½  
Vol 15 (02) â—½  
pp. 1250009 â—½  
Author(s):  
Li Li Eng â—½  
Ying Chou Lin
Keyword(s):  
United States â—½  
Hong Kong â—½  
Earnings Management â—½  
Financial Reporting â—½  
Reporting Quality â—½  
The United States â—½  
Good News â—½  
Chinese Firms â—½  
Cross Listing

This paper examines the quality of financial reporting of Chinese firms cross-listed in the United States, Hong Kong and noncross-listed Chinese firms. We examine quality of financial reporting based on measures of earnings management, timely loss recognition and price-earnings association. We find that both cross-listings and noncross-listings show significant earnings smoothing and use accruals to manage earnings, and are not timely in loss recognition. We surmise that cross-listing in the United States or Hong Kong has not changed the accounting choices of Chinese cross-listing firms. However, our findings show that the market considers earnings and book value data of cross-listing firms to be more informative than those of noncross-listing firms in the event of good news. Our contribution is to show that in contrast to previous literature, firms from China do not have better reporting quality when they cross-list in the United States. There are still significant accounting deficiencies in many Chinese firms cross-listed in the United States (Financial Times, 2011).

scholarly journals International Financial Reporting Standards and Earnings Management in Latin America

2016 â—½  
Vol 20 (3) â—½  
pp. 368-388 â—½  
Author(s):  
Alex Augusto Timm Rathke â—½  
Verônica de Fátima Santana â—½  
Isabel Maria Estima Costa Lourenço â—½  
Flávia Zóboli Dalmácio
Keyword(s):  
United States â—½  
Latin America â—½  
Earnings Management â—½  
Latin American â—½  
Financial Reporting â—½  
The United States â—½  
Reporting Standards â—½  
Anglo Saxon â—½  
Financial Reporting Standards â—½  
Cross Listing

Abstract This study analyzes the level of earnings management in Latin America after the adoption of the International Financial Reporting Standards (IFRS) and analyzes the role of cross-listing in the United States. The literature on earnings management in less developed countries is still under construction, and few studies focus on this issue, especially with respect to Latin America, despite its relevant role in the global economy. This paper fills this gap in the literature as it analyzes the level of IFRS earnings management regarding the first and main Latin American countries applying IFRS (Brazil and Chile), when compared to the main Anglo-Saxon countries with IFRS tradition (United Kingdom and Australia), and with the main Continental European economies (France and Germany). The results show that Latin American firms present a higher level of earnings management than Continental European and Anglo-Saxon firms, and this opportunistic behavior remains significant when only global players with cross-listing in the United States are analyzed. Thus, even with a unique set of high quality accounting standards (IFRS) and strong reporting incentives, countries' specific characteristics still play an important role in the way IFRS is implemented in each country.

scholarly journals Heterogeneity in earnings quality between different classes of companies after IFRS adoption: evidence from Brazil

2017 â—½  
Vol 28 (73) â—½  
pp. 113-131
Author(s):  
Roberto Black â—½  
Sílvio Hiroshi Nakao
Keyword(s):  
Earnings Management â—½  
Financial Reporting â—½  
Value Relevance â—½  
Earnings Quality â—½  
Economic Incentives â—½  
Net Income â—½  
Accounting Earnings â—½  
Ifrs Adoption â—½  
Before And After

ABSTRACT This paper aims to investigate the existence of heterogeneity in earnings quality between different classes of companies after the adoption of the International Financial Reporting Standards (IFRS). IFRS adoption is generally associated with an increase in the quality of financial statements. However, companies within the same country are likely to have different economic incentives regarding the disclosure of information. Thus, treating companies equally, without considering the related economic incentives, could contaminate earnings quality investigations. The case of Brazil is analyzed, which is a country classified as code-law, in which tax laws determined accounting practice and in which IFRS adoption is mandatory. First, Brazilian companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA) were separated into two classes: companies issuing American Depositary Receipts (ADRs) before IFRS adoption and companies that did not issue ADRs until the adoption of IFRS. Then, this second class of companies was grouped, using cluster analysis, into two different subclasses according to economic incentives. Based on the groups identified, the quality of accounting earnings is tested for each class of the companies before and after IFRS adoption. This paper uses timely recognition of economic events, value relevance of net income, and earnings management as proxies for the quality of accounting earnings. The results indicate that a particular class of companies began showing conditional conservatism, value relevance of net income, and lower earnings management after IFRS adoption. On the other hand, these results were not found for the two other classes of companies.

scholarly journals Quality of life in a new hospital hostel

10.1192/pb.20.5.275 â—½  
1996 â—½  
Vol 20 (5) â—½  
pp. 275-276
Author(s):  
C. J. Simpson
Keyword(s):  
Quality Of Life â—½  
United States â—½  
United Kingdom â—½  
Inner City â—½  
Rural Community â—½  
The United States â—½  
City Area â—½  
The United Kingdom

Quality of life scores were measured In a new hospital hostel in a rural community. These scores were compared to scores on patients in a similar hospital hostel in an inner city area in the United Kingdom and also scores on patients living in a range of different facilities in the community In the United States.

scholarly journals The Effect Of Cross Listing On The Accounting Quality Of Firms Cross Listed In East African Markets

2016 â—½  
Vol 12 (10) â—½  
pp. 403
Author(s):  
Emmah W. Ndirangu â—½  
Cyrus Iraya
Keyword(s):  
Earnings Management â—½  
East Africa â—½  
Value Relevance â—½  
Quality Metrics â—½  
Accounting Quality â—½  
East African â—½  
Cross Listing â—½  
The Cross â—½  
Timely Loss Recognition

Cross listing has been identified as a determinant of accounting quality. Prior empirical studies have differed on the effect of cross listing on accounting quality in different jurisdictions. The study of accounting quality in East Africa has however not incorporated the possible effect of cross listing. This research study sought to establish the effect that cross listing may have on the accounting quality of firms cross listed in East African stock exchanges. The study looked at three accounting quality metrics of firms cross listed in East Africa, namely, earnings management, timely loss recognition and value relevance of accounting information. The earnings management model used was the Lang, Raedy and Yetman (2003) earnings smoothing model. Timely loss recognition was investigated using the Basu (1997) model while value relevance was tested using the Lang, Raedy and Yetman (2003) model. These metrics were tested for differences during a three year period prior to cross listing and a three year period after cross listing. Accounting quality metrics for a total of six cross listed East African companies were analyzed. This study shows that earnings management did not occur around the cross listing dates. The value relevance of information presented by the cross listed firms did not change significantly, meaning that the ability of the summary accounting measures to accurately reflect the underlying economic value of the firms studied still remained as before the cross listing. There was no significant effect in terms of timely loss recognition in light of bad news and no indication of better prudence in the reporting of good news. The study finds that cross listing does not have an effect on the quality of reporting of firms cross listed within the East African Securities Exchanges.

scholarly journals Improving the Quality of Health Care in the United Kingdom and the United States: A Framework for Change

Milbank Quarterly â—½  
2001 â—½  
Vol 79 (2) â—½  
pp. 281-315 â—½  
Author(s):  
Ewan B. Ferlie â—½  
Stephen M. Shortell
Keyword(s):  
United States â—½  
Health Care â—½  
United Kingdom â—½  
Quality Of Health Care â—½  
The United States â—½  
The United Kingdom

scholarly journals The Role of IFRS on Financial Reporting Quality and Global Convergence: A Conceptual Review

2019 â—½  
Vol 3 (1) â—½  
pp. 67
Author(s):  
Auwalu Musa
Keyword(s):  
Earnings Management â—½  
Financial Reporting â—½  
Reporting Quality â—½  
Financial Reporting Quality â—½  
Accounting Quality â—½  
Ifrs Adoption â—½  
The World â—½  
Timely Loss Recognition

This study examines the role of International Financial Reporting Standards on financial reporting quality and the global convergence. The IFRS adoption is already an issue of global relevance across countries of the world due to the quest for uniformity, reliability and comparability of financial statements of companies. The adoption of IFRS in Europe is an example of accounting quality across-borders with different institutional frameworks and enforcement rules. This allows investigating whether, and to what extent accounting regulation per se can affect the quality of financial reporting and leads to convergence in financial reporting. Specifically, the study review how the change in the recognition and measurement of firms operating accrual item, the loan loss provision, affects income smoothing behaviour and timely loss recognition. The study found that the IFRS convergence reduces the scope for earnings management, is related to more timely loss recognition and leads to more value relevant accounting measures. Thus, the study reviews background and guidance on the change in financial reporting quality following extensive IFRS adoption around the world countries. The study found that a difference in accounting quality is related to country’s overall infrastructure setting. The study also highlights the importance of investor protection for financial reporting quality and the need for regulators to design mechanisms that limit managers' earnings management practice. The study found from different literatures that the adoption of IFRS leads to higher quality of accounting numbers and improve foreign direct investment across countries.

scholarly journals The Effects of Promotional Content on the Nutritional Quality of Children’s Breakfast Cereals From Australia, New Zealand, The United Kingdom, Canada and The United States

Proceedings â—½  
2019 â—½  
Vol 8 (1) â—½  
pp. 4
Author(s):  
Lynne Chepulis â—½  
Nadine Everson â—½  
Jason H.Y. Wu â—½  
Gael Mearns
Keyword(s):  
United States â—½  
United Kingdom â—½  
New Zealand â—½  
Nutritional Quality â—½  
The United States â—½  
Breakfast Cereals â—½  
The United Kingdom

Background: Breakfast is considered to be an essential meal for children, offering valuable nutrition for growing bodies [...]

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