Key findings
| Hypothesis | Country | Results |
|---|---|---|
| H1 | Australia | Negative market effects |
| Europe | Negative market effects | |
| US | Not great loses | |
| H2-H3-H4 | Reclassified firms | Increased their size, kept their profitability and lower leverage |
| Non reclassified | Lower size and earnings, increased leverage | |
| H5 | Australia | IFRS improvements have positively affected earnings management |
| Decreased accruals – improved Quality | ||
| Germany–UK | IFRS improvements have positively affected earnings management | |
| Not improved quality | ||
| US | Lower ratios after improvements | |
| Decreased accruals – improved reality |
| Hypothesis | Country | Results |
|---|---|---|
| Australia | Negative market effects | |
| Europe | Negative market effects | |
| US | Not great loses | |
| Reclassified firms | Increased their size, kept their profitability and lower leverage | |
| Non reclassified | Lower size and earnings, increased leverage | |
| Australia | IFRS improvements have positively affected earnings management | |
| Decreased accruals – improved Quality | ||
| Germany–UK | IFRS improvements have positively affected earnings management | |
| Not improved quality | ||
| US | Lower ratios after improvements | |
| Decreased accruals – improved reality |