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Simultaneous Releases of U.S. and Foreign GAAP Earnings

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  • Kam Chan
  • Samir El-Gazzar
  • Philip Finn
  • Rudy Jacob

Abstract

Prior studies examine the incremental information content of U.S. generally accepted accounting principles (GAAP) reconciliation of U.S. listed foreign firms and find mixed results. One of the main methodological issues in prior studies is the uncertainty concerning the dates of the reconciliation releases. This study examines the information content of U.S.GAAP reconciliation for a sample of U.S. listed foreign firms that released both U.S. and foreign GAAP earnings information simultaneously. The findings show that there is no incremental information content for the U.S. GAAP reconciliation over foreign GAAP earnings. When added to other empirical evidence from prior studies, this studies' results of no incremental information content further support the recent SEC announcement to work towards eliminating the reconciliation by 2009 for firms using IFRS. Copyright IAES 2006

Suggested Citation

  • Kam Chan & Samir El-Gazzar & Philip Finn & Rudy Jacob, 2006. "Simultaneous Releases of U.S. and Foreign GAAP Earnings," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(2), pages 161-168, May.
    • Handle: RePEc:kap:iaecre:v:12:y:2006:i:2:p:161-168:10.1007/s11294-006-9001-y
    DOI: 10.1007/s11294-006-9001-y
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    References listed on IDEAS

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    1. Brown, Lawrence D. & Hagerman, Robert L. & Griffin, Paul A. & Zmijewski, Mark E., 1987. "An evaluation of alternative proxies for the market's assessment of unexpected earnings," Journal of Accounting and Economics, Elsevier, vol. 9(2), pages 159-193, July.
    2. Pope, Pf, 1993. "A Comparison Of The Value-Relevance Of United-States Versus Non-United-States Gaap Accounting Measures Using Form-20-F Reconciliations - Discussion," Journal of Accounting Research, Wiley Blackwell, vol. 31, pages 265-275.
    3. Chan, Kam C. & Seow, Gim S., 1996. "The association between stock returns and foreign GAAP earnings versus earnings adjusted to U.S. GAAP," Journal of Accounting and Economics, Elsevier, vol. 21(1), pages 139-158, February.
    4. Mary E. Barth & Greg Clinch, 1996. "International Accounting Differences and Their Relation to Share Prices: Evidence from U.K., Australian, and Canadian Firms," Contemporary Accounting Research, John Wiley & Sons, vol. 13(1), pages 135-170, March.
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    Cited by:

    1. McEnroe, John E. & Sullivan, Mark, 2011. "Individual investors’ attitudes toward the acceptance of International Financial Reporting Standards in the United States," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(1), pages 20-31.

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    More about this item

    Keywords

    F30; F39; M41;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F39 - International Economics - - International Finance - - - Other
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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