Reference : The Effect of the German Accounting Law Modernization Act (BilMoG) on the Earnings Qu...
Scientific journals : Article
Business & economic sciences : Accounting & auditing
Law / European Law
http://hdl.handle.net/10993/28450
The Effect of the German Accounting Law Modernization Act (BilMoG) on the Earnings Quality of Private Firms
German
Lopatta, Kerstin mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > >]
Kaspereit, Thomas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Jaeschke, Reemda [> >]
Stockem, Gesa [> >]
2013
Corporate Finance
5
234-242
Yes
National
[en] BilMOG ; Earnings Quality
[en] The 2009 Accounting Law Modernization Act (BilMoG) had a considerable impact on German accounting principles, especially in terms of tax regulations, recognition, and measurement options. This paper analyzes whether these changes have had a positive effect on the quality of earnings reported in German financial statements. We find that earnings management significantly decreased after the implementation of BilMoG. This study is the first to examine potential improvements on earnings quality as a result of BilMoG. Our results indicate that in the run-up to the reform, legislators effectively aligned domestic accounting standards with IFRS principles, which led to improved transparency within financial reporting.
http://hdl.handle.net/10993/28450

File(s) associated to this reference

Fulltext file(s):

FileCommentaryVersionSizeAccess
Limited access
DB.pdfPublisher postprint671.07 kBRequest a copy

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.