Earnings management under German GAAP versus IFRS

Abstract this paper addresses the question whether voluntary adoption of international financial reporting standards (ifrs) is associated with lower earnings management. Ball et al. (journal of accounting and economics, 36(1–3), pp. 235–270, 2003 ball, r., robin, a. And wu, j. S. 2003. Incentives versus standards: properties of accounting income in four east asian countries, and implications for acceptance of ias. Journal of accounting and economics, 36(1–3): 235–270. [crossref], [web of science ®], , [google scholar]) argue that adopting high quality standards might be a necessary condition for high quality information, but not necessarily a sufficient one. In germany, a code-law country with low investor…