Accrual anomaly and mandatory adoption of IFRS: Evidence from Germany

Kim, Jung Hoon and Lin, Steve,(2019), Accrual anomaly and mandatory adoption of IFRS: Evidence from Germany. , Advances in Accounting, UNSPECIFIED

[thumbnail of The-role-of-organizational-forms-in-nonprofit-firms--real-ea_2019_Advances-i.pdf] Text - Published Version
Restricted to Repository staff only

Download (538kB)


This study examines the effect of mandatory adoption of IFRS on the accrual anomaly in Germany. Using the setting in Germany between 2002 and 2008, we find that the accrual anomaly occurs between 2002 and 2004 (pre-IFRS period) but disappears between 2006 and 2008 (post-IFRS period). Results are consistent after extending the test period to 2010 and controlling for analysts' cash forecasts. Wealso find that German firmswithmore significant improvements in analysts following, forecast accuracy, forecast dispersion, and earningsmanagement following mandatory adoption of IFRS in 2005 have greater decline of the accrual anomaly between 2006 and 2008. Overall, our findings suggest that IFRS adoption together with improved reporting enforcement significantly reduces the accrual anomaly in Germany.
Keywords : Accrual anomaly Analysts following Forecast accuracy Forecast dispersion Earnings management Germany, UNSPECIFIED
Journal or Publication Title: Advances in Accounting
Volume: 47
Item Type: Article
Subjects: Akuntansi
Depositing User: Users 8 not found.
Date Deposited: 26 Dec 2019 07:26
Last Modified: 26 Dec 2019 07:26

Actions (login required)

View Item
View Item