Earnings management and cross listing: Are reconciled earnings comparable to US earnings?

• 成果类型: Article; Proceedings Paper
• 署名作者: Lang, Mark; Raedy, Jana Smith; Wilson, Wendy
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Southern Methodist University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2006.04.005
• 发表日期: 2006
• 关键词: value-relevance literature; UNITED-STATES; Investor protection; FIRMS

摘要

We compare US firms' earnings with reconciled earnings for cross-listed non-US firms. Non-US firms' earnings exhibit more evidence of smoothing, greater tendency to manage towards a target, lower association with share price and less timely recognition of losses. Firms from countries with weaker investor protection show more evidence of earnings management, suggesting that SEC regulation does not supplant the effect of local environment. There is more evidence of earnings management for firms reconciling to US GAAP than for those preparing local accounts in accordance with US GAAP, but both show more evidence of earnings management than US firms. (c) 2006 Elsevier B.V. All rights reserved.