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Adamek, Carmen
Kaserer, Christoph
Year of Publication: 
Series/Report no.: 
CEFS working paper series 2006-01
It is well-known from US-related studies that investors systematically overreact to accrual-based accounting information. We address the question to what extent this accrual anomaly is related to different accounting standards. We provide empirical evidence that the accrual anomaly is also present in Germany. However, this anomaly has become particularly important after the year 2000 and cannot be detected for firms presenting their financial statements under German GAAP. It is argued that introducing true and fair view accounting, like IFRS, that relies on difficult-to-verify information, may not be suitable to improve accounting information quality in the context of a weak corporate governance system.
accrual anomaly
earnings persistency
conservative accounting
true and fair view accounting
accounting standards
accounting regulation
empirical accounting research
German GAAP
Document Type: 
Working Paper

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