The Voluntary Adoption of Internationally Recognized Accounting Standards and Firm Internal Performance Evaluation

• 成果类型: Article
• 署名作者: Wu, Joanna Shuang; Zhang, Ivy Xiying
• 署名单位: University of Rochester; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2009.84.4.1281
• 发表日期: 2009
• 页码: 1281-1309
• 关键词: investor protection; turnover; COMPENSATION; NEGOTIATIONS; INFORMATION; management; governance; earnings; BIAS

摘要

A large body of research is devoted to understanding the causes and consequences of firms' adoption of internationally recognized accounting standards. Thus far, researchers' attention has focused almost exclusively on the informational benefits of the adoption. We extend the existing literature by offering a different, stewardship perspective. We hypothesize that the voluntary adoption of international accounting standards is associated with changes in the firm's internal performance evaluation process; in particular, it is associated with increases in the sensitivities of CEO turnover and employee layoffs to accounting earnings. Our results are consistent with these predictions.