Work

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

Year: 2009

Type: article

Abstract: A large body of research is devoted to understanding the causes and consequences of firms' adoption of international 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 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.

Source: The Accounting Review

DOI: 10.2308/accr.2009.84.4.1281

Authors: Joanna S. Wu, Ivy Zhang

Institutions: University of Rochester, University of California, Riverside, University of Minnesota

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3121970982

FWCI: 36.85

Cites: 55

Cited by: 113

Related to: 10