Purpose: The purpose of this paper is to investigate country-level and firm-level determinants of within-country accounting comparability for 16 European Union countries plus the USA in the post-International Financial Reporting Standards adoption period. Design/methodology/approach: The authors use ordinary least squares regression to test the hypotheses with a correction for heteroscedasticity. Findings: The authors find that firms in countries with rules-based accounting, higher quality public auditor work environments, stricter enforcement of accounting standards and more reliance on equity-market financing have higher within-country comparability with each other. At the firm-level, the authors find that firms which are larger, engage in less earnings management, and have lower return-on-asset volatility have higher within-country comparability with each other. Research limitations/implications: The authors use one measure of accounting comparability. Alternative measures of accounting comparability could test the hypotheses more completely. Practical implications: The findings of the paper may help the regulators make more efficient policies to establish an efficient financial market within their country. Originality/value: The paper is the first, to the authors’ knowledge, to identify country-level and firm-level determinants of within-country accounting comparability. It contributes to the accounting literature by completing the theory of international accounting comparability from the within-country perspectives, as prior literature focuses on the cross-country perspective of international accounting comparability.
|Number of pages||20|
|Journal||Asian Review of Accounting|
|State||Published - Jan 22 2020|
Bibliographical noteFunding Information:
The authors thank Nan Zhou (the Editor) and Yue Li (the Discussant) for their valuable suggestions, which have significantly improved the paper. The authors also thank Robert Larson, Beu Lee, Emily Shafron, and participants of the 2019 Annual International Accounting Symposium of Asian Review of Accounting, the 2019 American Accounting Association Annual Meeting and the 2019 American Accounting Association Ohio Regional Meeting for their helpful comments.
© 2019, Emerald Publishing Limited.
- Accounting comparability
- Around the world
- International Financial Reporting Standards
ASJC Scopus subject areas