a review and analysis of international accounting research in jiaat 2002 2010 2010 journal of...

8/10/2019 A Review and Analysis of International Accounting Research in JIAAT 2002 2010 2010 Journal of International Accou…

http://slidepdf.com/reader/full/a-review-and-analysis-of-international-accounting-research-in-jiaat-2002-2010 1/17

Journal of International Accounting, Auditing and Taxation 19 (2010) 137–153

Contents lists available at ScienceDirect

Journal of International Accounting,Auditing and Taxation

A review and analysis of international accounting research in JIAAT :2002–2010

Hans J. Dykxhoorn, Kathleen E. Sinning∗

Haworth College of Business, Western Michigan University, Kalamazoo, MI 49008, USA

a r t i c l e i n f o

Keywords:

Content analysis

Author analysis

International accounting

a b s t r a c t

During the period 2002–2010,authorswhose research was published in the Journal of Inter-

national Accounting, Auditing and Taxation extended the international accounting literature

by 82 articles and six special studies. The purpose of this paper is to summarize these addi-

tions and analyze the types of topics and methodologies the authors used to enhance our

understanding of the international accounting issues facing the accountancy profession.

The analysis also will help international accounting researchers identify areas for future

investigation.

© 2010 Elsevier Inc. All rights reserved.

1. Introduction

The Journal of International Accounting, Auditing and Taxation (JIAAT) was founded in 1992 to disseminate research that isrelevantto thedevelopmentof thefield of international accounting. Thejournal’s goal is to publish manuscripts inthe areas of

financial accounting, auditing, taxation, management advisory services, and accounting information systems, among others,

that are of interest to academics and practitioners.1 A study published by Adhikari, Tondkar, and Hora (2002) analyzed

the research published in the journal during the period of 1992 and 2001 and determined that over half of the articles

dealt with the topic of financial accounting and reporting and about a third with auditing and taxation. It also revealed that

papers focusing on multinational operations appeared most frequently, reflecting the increasing importance of international

business and the internationalization of capital markets.

Since 2001, a number of important events have taken place that affected international accounting. In 2002, the United

States (U.S.) Securities and Exchange Commission (SEC) announced its support of the Norwalk Agreement between the

International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to develop high

quality accounting standards for domestic and cross-border financial reporting. In the same year, the European Commission

adopted the use of International Financial Reporting Standards (IFRS) for all listed companies in member states for years

beginning on or after January 1, 2005. In July 2002, the U.S. enacted the Sarbanes-Oxley Act, which expanded the disclosuresof financial and non-financial control measures of firms and increased the responsibilities of audit committees and auditors

as well. Sections of the act apply to international as well as domestic controls. In November 2007, the SEC voted to permit

foreign filers to present financial statements prepared in accordance with IFRS without reconciliation to U.S. Generally

Accepted Accounting Principles (GAAP). A roadmap was proposed by the SEC in November 2008 to allow U.S. issuers to

prepare their financial statements in accordance with IFRS. The SEC announced in February 2010, however, that it would

commit to a new plan that would delay a move to IFRS until at least 2015 or 2016 for first time users (Securities and Exchange

∗ Corresponding author.

E-mail address: [email protected] (K.E. Sinning).1 Editorial policy of the Journal of International Accounting, Auditing and Taxation published by Elsevier.

1061-9518/$ – see front matter © 2010 Elsevier Inc. All rights reserved.doi:10.1016/j.intaccaudtax.2010.07.005

http://localhost/var/www/apps/conversion/tmp/scratch_2/dx.doi.org/10.1016/j.intaccaudtax.2010.07.005

http://www.sciencedirect.com/science/journal/10619518

mailto:[email protected]



mailto:[email protected]

http://www.sciencedirect.com/science/journal/10619518




138 H.J. Dykxhoorn, K.E. Sinning / Journal of International Accounting, Auditing and Taxation 19 (2010) 137–153

Table 1

Frequency of topics published by JIAAT , Volumes 11–19 (2002–2010).

Topic Frequency Relative frequency

Financial accounting and reporting 51 0.58

Taxation 14 0.16

Auditing 12 0.14

Managerial 4 0.04

Accounting information systems 1 0.01

Special studies 6 0.07Total published 88

Commission, 2010). On March 16, 2010, in a prepared statement at the meeting of the Economic and Financial Affairs Council

(ECOFIN), Sir David Tweedie announced that the IASB was still on track to meet its June 2011 goal of finishing a common

set of financial rules and completing the convergence process. More than 115 countries had adopted IFRS at the time of the

announcement.

Despite and because of these events, there are still many differences among countries in the areas of financial accounting,

auditing, taxation, and managerial accounting, differences that continue to make comparisons of results of operations and

financial conditions among companies difficult. The objective of this study is to determine how, if at all, the focus of research

published in JIAAT changed during the past nine years. The study also will organize and summarize these additions to the

literature to help authors identify areas for future research.

This article is organized as follows: Section 2 analyzes the publications in JIAAT by topic, methodology, and international

perspective; Section 3 presents a review of each of the publications from the period 2002–2010; and Section 4 provides asummary and discussion of possible directions for future research.

2. Analysis of publications

During the period 2002–2010, 18 issues of JIAAT were published that included 82 articles and 6 special studies. An

analysis of the research topics, the methodologies used to conduct the studies, the international perspectives presented in

the research, and the authorship of the articles is presented below.

2.1. Analysis of topics

According to Adhikari et al. (2002), over half (58%) of the articles appearing in JIAAT during its first 10 years of publication

dealt with issues in financial accounting and reporting. As shown in Table 1, the relative frequency of articles dealing

with financial accounting remained the same for the 2002–2010 period. Adhikari et al. (2002) also found that auditingarticles comprised 20% and taxation articles 12%, respectively, of the publications in JIAAT’s first 10 years. Table 1 reveals

that articles dealing with taxation comprised 16% of the total published while auditing articles made up 14%. Managerial

accounting articles made up 4% of the articles published in the 2002–2010 period, which was half the relative frequency

during the period 1992–2001. It should be noted that no education or government and not for profit articles were published

during 2002–2010, but an article dealing with accounting information systems appeared. Adhikari et al. (2002) reported that

coverage of education and government and not for profit topics was low and declining over the first 10 years of publication.

2.2. Analysis of methodologies

The types of methodologies used in the papers published in JIAAT were empirical, survey, and descriptive methods.

Empirical research included studies that tested hypotheses through observations. Survey research used a questionnaire

or interviews to determine respondents’ perceptions or opinions while descriptive studies included reviews, historical

analysis, and discussions. Table 2 shows that empirical methods were used in approximately 76% of the studies and surveys

or interviews were used in about 21% of the research. Adhikari et al. (2002) noted thatthere was a trend toward greater use of

Table 2

Frequency of methodologies used in articles published in JIAAT (excluding special studies) Volumes 11–19 (2002–2010).

Topic Methodology

Empirical Survey Descriptive Total

Financial 44 5 2 51

Tax 10 4 0 14

Auditing 7 4 1 12

Managerial 1 3 0 4

AIS 0 1 0 1

Total 62 17 3 82

Relative frequency 0.756 0.207 0.037 1.000



H.J. Dykxhoorn, K.E. Sinning / Journal of International Accounting, Auditing and Taxation 19 (2010) 137–153 139

Table 3

Frequencyof topics publishedby JIAAT by international perspective (excluding special studies)Volumes

11–19 (2002–2010).

Topic Frequency Relative frequency

Country study

Financial 34 0.42

Taxation 4 0.05

Auditing 10 0.12

Managerial 1 0.01AIS 0 0

Total 49 0.60

Comparative study

Financial 9 0.11

Taxation 10 0.12

Auditing 2 0.02

Managerial 3 0.04

AIS 0 0

Total 24 0.29

International business

Financial 7 0.09

Taxation 0 0

Auditing 0 0

Managerial 0 0

AIS 1 0.01

Total 8 0.10Universal

Financial 1 0.01

Taxation 0 0

Auditing 0 0

Managerial 0 0

AIS 0 0

Total 1 0.01

Total 82 1.00

empiricalmethodologies in international accountingresearch.The increased emphasis on the use of empiricalmethodologies

was reflected in the articles published in JIAAT as well.

2.3. Analysis of international perspective

Adhikari et al. (2002) analyzed the international dimension of papers published in JIAAT using the categories of country,

comparative, international business, and universal studies. That classification is used in this paper also. Country studies

analyze accounting issues in a single country while comparative studies evaluate differences or similarities in accounting

issues or practices between or among two or more countries or regions. Articles classified as international business studies

are those that deal with accounting practices of multinational operations while universal studies deal with theories or

concepts that apply globally.

Country studies comprised 60% of the articles published in JIAAT during the 2002–2010 period, as indicated in Table 3.

Many of the country studies focused on the challenges and benefits arising from the convergence to international accounting

standards. Of the 49 papers dealing with a single country, nine dealt with accounting issues in China and four focused on

issues in Hong Kong. The focus on accounting practices in China is understandable since its economy as well as the level of

foreign investment in its firms expanded dramatically during this period.

Comparative studies made up 29% of the articles published in JIAAT during 2002–2010. Articles dealing with taxation

accounted for 10 of the 24 comparative studies and focused mainly on effective tax rates and efforts to minimize tax

evasion. Papers dealing with international business and universal accounting topics made up the remaining 11% of the

articles published.

2.4. Analysis of authorship

The articles published in JIAAT during 2002–2010 were written by 150 authors from universities or organizations in 19

countries. Authors from the U.S. (63), China (16), U.K. (15) and Canada (11) were the most frequent contributors, although

authors from many regions of the world published their research in JIAAT , as shown in Table 4.

The authorship of the articles published in JIAAT is presented in Table 5. The table shows that 19 articles (23%) had single

authors. Eight of the authors (10%) were from universities or organizations outside the U.S. while 11 of the authors (13%)

were from the U.S. This result is similar to the findings of Adhikari et al. (2002), who determined that 23% of the articles were

single authored during the first 10 years of publication of JIAAT . The remaining 63 articles (77%) published in JIAAT during

2002–2010 were co-authored, with 21 of the papers (26%) co-authored by U.S. authors, 34 (41%) by non-U.S. authors and




Table 4

Location of authors of articles published by JIAAT in Volumes 11–19

(2002–2010).

Country Number of authors

United States 63

China 16

United Kingdom 15

Canada 11

Netherlands 8Australia 7

Spain 6

Japan 3

Norway 3

Belgium 2

Denmark 2

Finland 2

Germany 2

Greece 2

Malaysia 2

New Zealand 2

Singapore 2

Costa Rica 1

Korea 1

Number of countries 19Number of authors 150

8 (10%) by authors from universities and organizations in and outside the U.S. While the frequency of papers co-authored

by non-U.S. authors increased for the 2002–2010 period to 41% as compared to the 27% found by Adhikari et al. (2002),

the frequency of articles co-authored by U.S. and non-U.S. co-authors decreased to 10% as compared to the 19% found by

Adhikari et al. (2002). It should be noted, however, that seven of the articles co-authored by non-U.S. authors had co-authors

from different countries. Therefore 15 of the articles (18%) were the result of collaboration by co-authors from different

countries. Adhikari et al. (2002, p. 46) note that this type of collaboration creates a “multi-country perspective in accounting

research.”

3. Review of the literature in JIAAT

As noted above, the articles and special studies published in JIAAT during 2002–2010 dealt with topics in six broadcategories. A review of the articles indicates that a wide variety of issues were investigated within the six topics.

3.1. Financial accounting and reporting

3.1.1. Information usefulness/value relevance

Olibe (2002) analyzed the effect of U.K.-based annual general meetings on security returns and investors’ trading in the

U.S. market. He found that the annual meetings reflected information that was useful to U.S. market participants but that

U.S. investors may have lacked easy access to these meetings. He recommended that the SEC require firms listed on U.S.

exchanges to publicly announce the annual general meeting dates in the U.S. media.

Nichols and Buerger(2002) studied theeffects of differingmethods of valuing fixed assets for financial reporting purposes

on decision makers in the U.S. and Germany. They analyzed whether or not the method of valuing fixed assets (historical cost

versus fair value) or the country the financial statement user was from had an effect on credit decisions made by bank loan

Table 5

Frequency of articles published in JIAAT by authorship (excluding special studies) Volumes 11–19 (2002–2010).

Topic Methodology

SingleauthorU.S. Singleauthornon-U.S.Co-authorsU.S. Co-authorsnon-U.S. Co-authors U.S.

and non-U.S.

Total

# % # % # % # % # % # %

Financial 7 9 3 4 16 20 21 26 4 5 51 62

Tax 4 5 5 6 2 2 3 4 0 0 14 17

Auditing 0 0 0 0 2 2 8 10 2 2 12 15

Managerial 0 0 0 0 1 1 2 2 1 1 4 5

AIS 0 0 0 0 0 0 0 0 1 1 1 1

Total 11 14 8 10 21 25 34 42 8 9 82 100




officers. The research involved an experiment in which the loan officerswere given a complete set of financial statements for

a fictitious company. The results indicated that U.S. bankers granted significantly higher loans to companies using historical

cost while German bankers granted significantly higher loans to companies using fair value accounting for fixed assets. The

authors concluded that cultural differences might influence users’ preferences for valuation methods and recommended

that financial statements disclose both methods to meet user needs on a global basis.

Kang (2003) used U.S. stock prices of Japanese and U.K. firms cross-listed in the U.S. to provide further evidence about the

association between legal regime in the country of domicile and the value relevance of accounting information. He examined

whether differencesin the properties of accountinginformation (supply effect) or differencesin the way investors interpreted

and applied the information (demand effect) drove the association. The regression results indicated that the supply effect

applied and that the legal regime of a firm’s country of origin did have a marginal effect on the value relevance of accounting

information.

Fox, Grinyer, and Russell (2003) studied U.K. and International Accounting Standards to determine if regulators have

promulgated standards that are internally consistent and facilitate the interpretation of firms’ performance. Their analysis

indicated that at the time of the study, U.K. and international accounting regulators developed standards that were based

on conflicting theoretical concepts and resulted in net income measures that were not meaningful to users because they

mixed valuation-based and matching-based approaches.

Chung, Ho, and Kim (2004) analyzed whether or not discretionary accruals were useful for assessing the market value of

Japanese industrial firms listed on the Tokyo Stock Exchange. The research extended the literature on accruals by evaluating

whether or notthe ownershipstructure,in particular cross-held corporatestructure,and financial structure of a firmaffected

the valuation of accruals. Their results showed that discretionary accruals conveyed information that improved the value

relevance of earnings. The results also indicated, however, that the market in Japan did not value the discretionary accruals

of financially distressed companies and discounted the discretionary accruals of highly cross-held firms.

Hora, Tondkar, and McEwen (2004) used a regression model to examine whether the reconciliation to U.S. GAAP of

selected financial data of foreign firms affected thetrading volumeof capital markets participants, an indicatorof information

usefulness. Their results indicated that market participants used the reconciliations in trading decisions. The results for the

period 1988–1995 found that the disclosure of a foreign firm’s reconciled earnings was associated with abnormal trading

volume. The study provided evidence that the reconciliation process provided additional information above that found in

the foreign GAAP earnings announcement.

Coppens and Peek (2005) tested whether private firms in eight European Union member states engaged in earnings

management during the period 1993–1999. The countries included in the study were those for which data availability was

the highest. Earnings management was measured by comparing the earnings distributions of private firms with the earnings

distributions of public firms in the same countries. The results of the study indicated that private firms managed earnings

to avoid losses even without the pressures of capital markets. The authors also provided evidence that in countries where

tax regulation affected financial accounting, private firms did not avoid reporting even small losses. The authors concluded

that the usefulness of private companies’ accounting information varied substantially throughout the EU.

LinandChen(2005) examined the incremental valuerelevance of the reconciliationof accounts from the Chinese Account-

ingStandards to the international accounting standardsfor Chinese listed companies with both A- andB-shares. Their results

showed that earnings prepared under the Chinese standards were more value relevant in explaining stock prices in the A-

and B-share markets. At the aggregate level, the reconciliation of earnings and shareholders’ equity from the Chinese to

international accounting standards added value only for stock in the B-share market.

Goodwin and Ahmed (2006) conducted a large sample study of the value relevance of earnings in Australia for the period

1975–1999. The goal was to determine whether or not value relevance was affected by the capitalization of intangibles.

The results showed that although there was weak evidence of a decline in earnings value for the average firm, the value

relevance of earnings and book value increased more over time for firms that capitalized intangibles than for firms that did

not capitalize intangibles.

Olibe (2006) studied the response of U.S. investors to non-U.S. GAAP earnings that were disclosed only or initially in

the U.K. He used price and trading volume to assess the usefulness of the preliminary earnings announcements. The results

indicated that U.S. investors were not confused by the differences between the U.S. and U.K. generally accepted accounting

principles and used U.K. GAAP earnings in their investment decisions.

Myring (2006) investigated the association between earnings and returns using a one-month return window for a sam-

ple of firms from 32 countries that were grouped into accounting regimes. Accounting standards, corporate governance

mechanisms, economic conditions, and stock market characteristics were the factors used to determine regimes. The results

showed a significant market reaction to the earnings announcements in all regimes, suggesting that accounting information

is relevant to investors worldwide. The study found an increase in the significance of changes in earnings per share and ana-

lyst forecast errors, which the author noted could be the result of improvements in corporate governance and accounting

standards.

Callao, Jarne, and Lainez (2007) examined the effect the adoption of IFRS had on the usefulness of financial reporting

in Spain. The study looked at two of the key characteristics of usefulness, the comparability and relevance of financial

reporting, by testing for significant differences in the financial figures and ratios calculated on the basis of the Spanish

and international accounting standards for Spanish listed companies. Significant differences were found when IFRS rather

than Spanish accounting standards were applied in the preparation of financial information. The authors concluded that




comparability was worsened by the use of IFRS and that there was no improvement in the relevance of financial reporting

to Spanish markets.

Habib (2008) investigated the relative and incremental information content of earnings versus cash flows for firms in

New Zealand, an environment in which listed companies have concentrated ownership. The study did not find a statisti-

cally significant difference between the explanatory power of earnings and cash flows. Both earnings and cash flows had

incremental information content for stock valuation.

Gjerde, Knivsfla, and Saettem (2008) examined the usefulness of accounting information under IFRS for investors in

firms listed on the Oslo Stock Exchange. The study looked at the financial statements prepared using Norwegian Generally

Accepted Accounting Principles and restated using IFRS for 145 firms in Norway. The authors tested whether the IFRS figures

correlated more strongly with market values than those determined using the Norwegian principles. The results indicated

marginal value relevanceof adopting IFRS dueto theuse of fair valueson thebalance sheet andthe effects of thecapitalization

of intangibles on net operating income.

Shuto, Otomasa, and Suda (2009) studied the relative information content of dirty surplus accounting by testing the

association between the cost of debt of Japanese companies and dirty surplus items on their balance sheets. The focus of

the study was on the usefulness of the information for bond contracting rather than on the relevance of the information in

equity valuation. The results showed that foreign currency translation adjustments had relative and incremental powers in

explaining the spread between corporate bond and government bond rates. Unrealized gains and losses on securities had

only incremental information content while land revaluation surplus had no information content. The authors concluded

that the Japanese requirement to disclose each dirty surplus item separately was important from the perspective of the bond

market.

Navarro-Garcia and Bastida (2010) surveyed the financial statement preparers of Spanish listed firms to determine their

perceptions of the appropriateness of IFRS for decision making in a code-law country. The results indicated that IFRS were

not considered to be more appropriate than Spanish accounting standards. The chief accountants and financial managers

perceived IFRS to be high quality but complex and too flexible. The survey respondents noted that costs to comply with

the standards were increased due to disclosure requirements and outweighed the perceived benefits, including enhanced

international comparisons.

Iatridis and Rouvolis (2010) evaluated thevaluerelevanceof IFRS financial statements forGreek listedfirms andexamined

the factors associated with the provision of voluntary disclosures. The results indicated that IFRS-based financial statement

measures had higher value relevance than those prepared under Greek GAAP. The study also determined that firm size and

level of financing were positively associated with the provision of voluntary IFRS disclosures.

3.1.2. Financial statement disclosures

Street and Nichols (2002) examined pre- and post-International Accounting Standard 14 Revised segment disclosures for

a sample of 210 companiesthat referred to theuse of international accounting standards. The goal wasto determinewhether

the revision of the standard addressed user concerns about segment disclosures. The findings determined that there was

a significant increase in the disaggregated data (the number of items of information disclosed for primary and secondary

segments of business) provided to users of financial statements. It found, however, that some companies continued to

misreport that they operated in only one line of business while their annual reports suggested the existence of multiple

business segments.

Seese and Doupnik (2003) examined the effect that two possible materiality benchmarks had on the usefulness of indi-

vidual foreign country disclosures required by Statement of Financial Accounting Standards No. 14. The experiment used

financial analysts as subjects and tested how the benchmarks affected the analysts’ judgments about firm risk. The bench-

marks were suggested as possible ways to determine the materiality of operations in a foreign country and included the

percent of total operations located in a country and the level of risk associated with the country. The study disclosed that

differences in the percent of operations located in a specific country affected risk judgments only when the country was of

medium risk. The results also indicated that the judgment of firm specific risk was affected by the disclosed level of country

risk, regardless of whether the countries were located in Europe or the Asian-Pacific region. The authors recommended

that to provide the most relevant disclosures, firms should consider the level of country risk in determining whether the

operations in a particular country are material.

Hossain and Marks (2005) evaluated the information content of the mandatory quarterly disclosure of foreign sales data

for U.S. multinational companies. The study analyzed companies that voluntarily disclosed the data prior to the imposition

of the requirement and those that did not. The results showed that the requirement had no information content in the

first year of implementation for companies that did not disclose the information prior to the effective date but did in

the remaining years of the study. The quarterly foreign sales data did have information content for companies that had

voluntarily disclosed the data prior to the mandatory implementation. The authors suggested that since many companies

did not voluntarily provide quarterly geographic sales data, standard setters should consider requiring the disclosure of that

information as well.

Tsakumis, Doupnik, and Seese (2006) presented evidence to explain the diversity in geographic area disclosure prac-

tices. The authors examined whether the potential competitive harm associated with geographic area disclosures provided

an incentive for managers of U.S. firms with foreign operations to present less detailed geographic area information. The

regression results showed that even after controlling for the number of countries in which a firm operated, firm size, and




prior reporting practices, firms with greater exposure to competitive harm disclosed less detail about country specific

revenue.

Nichols and Street (2007) used the financial statements from 160 companies in 15 countries to examine the relationship

between firm choice to separately disclose a business segment and industry competition after the adoption of International

Accounting Standard 14 Revised. They hypothesized that companies would be less likely to separately disclose segment

operations when segment performance exceeded industry averages. The results showed a significant negative relationship

between company returns compared to global industry returns and disclosure of segment operations. They concluded that

the standard still provided managers with the ability to aggregate segment operations to conceal information concerning

excess returns and recommended that the IASB reduce this flexibility.

Abd-Elsalam and Weetman (2003) analyzed the effect of familiarity and language accessibility on International Account-

ing Standards disclosures when the standards were first adopted by an emerging market country. The authors studied a

sample of annual reports of companies listed in Egypt and applied a disclosure index measure to determine the relationship

between corporate characteristicsand compliance afterthe adoption of international accountingstandards. They determined

that when the IAS requirements were available in Arabic, the level of compliance with familiar aspects of the international

standards was significantly higher than the level of compliance with relatively unfamiliar disclosure requirements. They

also found that compliance with relatively unfamiliar IAS disclosure requirements was lower when the regulations were

not available in Arabic. A lower degree of compliance occurred with less familiar IAS requirements regardless of company

characteristics. The type of audit firm used was related to the extent of compliance with less familiar IAS requirements. The

authors stressed the importance of ensuring that changes in international accounting standards be accessible in approved

translations for all countries to enhance compliance.

Lajili and Zéghal (2005) tested the association between market values and human capital information, such as the volun-

tary disclosure of labor costs and non-financial data including productivity and efficiency of labor use. The study revealed

a positive and significant relationship between labor cost disclosures and market values of stock, indicating that investors

used the information in valuing firms. It also showed that measures of productivity and efficiency were negatively associ-

ated with market values. The authors concluded that additional, more refined human capital disclosure is needed so that

investors can assess firms’ human resource decisions and the effects on performance more adequately.

Mohd Ghazali and Weetman (2006) studied the factors associated with voluntary disclosures by Malaysian companies

following the 1997 financial crisis in southeast Asia. They were interested specifically in how ownership, board structure,

and industry competitiveness affected the level of voluntary disclosure in 2001, the year a Malaysian corporate governance

code became effective. Their results showed that there was no significant change in the factors associated with voluntary

disclosure. Director ownershipand familycontrol of theboardof directorscontinued to have thestrongest impacton thelevel

of voluntary disclosure. The results also indicated that industry competitiveness did not affect the level of disclosure. The

authors concluded that regulatory efforts to enhance corporate transparency were not achieved for closely held businesses.

Petersen and Plenborg (2006) evaluated whether or not the level of voluntary disclosure affected information asymmetry

for Danish companies. The study looked at the voluntary disclosures during 1997–2000 of 62 issues deemed important to

financial analysts and investors and found that fewer than 21% of the issues were disclosed in annual reports. The results

showed that in Denmark, voluntary disclosure was negatively associated with two metrics for information asymmetry, the

bid-ask spread and the turnover ratio. The authors noted that despite a different institutional setting in Denmark, the results

were similar to those of past studies of voluntary disclosures based on U.S. data.

Wang and Claiborne (2008) examined the association between voluntary disclosures and the cost of debt of Chinese

publicly traded companiesand explored thedeterminantsof voluntarydisclosures in their annualreports. The data indicated

that extensive voluntary disclosure did not result in a lower cost of debt capital for Chinese listed firms that issued both

domesticand foreign shares. Thestudyfoundthatthe level of voluntarydisclosurewas positively associated to thepercentage

of state ownership, foreign ownership, return on equity, and the reputation of the firm’s auditor. The results indicated that

there wasa substantial gap in terms of the extentof voluntarydisclosure between Chinese companiesand those in developed

economies.

Chau and Gray (2010) investigated the relationship between levels of family ownership, board independence, and chair-

man independence and the extent of voluntary disclosures by firms in Hong Kong. The study found a positive association

between the appointment of an independent chairman and the level of voluntary disclosure. The results also indicated

that the number of independent non-executive directors was related positively to the level of voluntary disclosure but was

mitigated by the appointment of an independent chairman. Low levels of family ownership were related to low levels of

disclosure while higher levels of family ownership were associated with higher voluntary disclosures. The authors noted

that the results should be of interest to policy makers in other east Asian countries characterized by highly concentrated

ownership structures.

3.1.3. Executive compensation

Street and Cereola (2004) studied the impact of expensing employee stock options on the key performance indicators of

companies domiciled outside the U.S. but listed on U.S. exchanges. They analyzed the pro-forma stock option disclosures

provided by almost 300 firms from Australia, the U.K., Canada, France, Germany, Japan and Ireland for the year 2000. The

research found that although theresults varied significantlyby country, recognition of expenses associated with stock option

compensation had a material impact on the key performance measures of firms in the study.




Chalmers and Godfrey (2005) presented evidence about how the IFRS requirement to expense the fair value of stock

option compensation would affect Australian firms. They found that more than half of Australia’s largest firms were affected

by the accounting requirement and that a third of the firms with option grants had not disclosed the fair value of the options.

They concluded that this accounting change associated with adopting IFRS was significant and that firms needed to consider

how to deal with the adverse effect of the change on reported earnings.

Shuto (2007) contributed to the literature on earnings management by focusing on the relationship between executive

compensation and discretionary accounting choices in an international context. The results showed that the use of dis-

cretionary accruals increased executive compensation for managers of Japanese firms. He concluded from the results that

although earnings management behavior is considered opportunistic when it is used for compensation purposes, it can also

be viewed as efficient contracting.

3.1.4. Firm characteristics and accounting choice

Landry and Callimaci (2003) used a logit model to examine how the decision by Canadian firms to capitalize research

and development (R&D) spending was influenced by cross-listing and firm characteristics including leverage, size, return

on equity, and cash flow from operations. The results showed that the probability of a firm capitalizing R&D costs increased

regardless of the cross-listing status. The authors believed this result occurred because Canadian firms adopted U.S. account-

ing practices to ease financial statement comparison. The analysis also indicated that the probability of capitalizing R&D

increased with leverage, age of the firm, and higher levels of cash flow from operations. The probability of capitalizing

decreased for larger firms, those with more concentrated ownership, and firms with higher returns on equity.

Abd-Elsalam and Street (2007) studied the relationship between corporate governance characteristics and the timeliness

of corporate Internet reporting by U.K. companies. They determined that corporate boards with more experience, shorter

length of service of executive directors, and less cross directorships provided more timely internet reporting. They also

found that timely reporting was negatively associated with board independence, block ownership, and duality of the roles

of chairman of the board and CEO. The results showed that U.K. listed companies did not provide investors with the most

current information nor with quarterly data. The authors suggested that U.K. firms were not signaling a commitment to

timely reporting to users.

Machuga andTeitel(2009) analyzed the relationship between earnings quality and board characteristics of Mexican firms

listed on the Mexican Stock Exchange. The goal was to determine if the quality of earnings improved in a business environ-

ment characterized by family control after the enactment of a corporate governance code. The results showed that there

were no differences in changes in earnings quality for firms that did or did not disclose information about the composition

of the board. Changes in earnings quality were associated negatively with family control and shared directors. The authors

concluded that the corporate governance code did not meet the goal of improving the quality of earnings.

3.1.5. Analyst forecasts

Hodgdon, Tondkar, Harles, and Adhikari (2008) documented the relationship between firm compliance with IFRS disclo-

sure requirements and analysts’ earnings forecast errors. The results from a sample of non-U.S. firms showed that individual

analysts’ forecast errors were negatively related to IFRS compliance. The study presented evidence that when firms provided

the financial disclosures required by IFRS, they benefitted since financial analysts were better able to predict earnings that

were relevant to valuing firms’ securities.

Habib and Hossain (2008) presented evidence concerning firms’ management of earnings and analyst forecasts in Aus-

tralia. The study extended the literature on managers’ attempts to meet or beat analyst forecasts to a market with a different

type of legal environment than that found in prior studies. The study used analyst forecast data for the period 1995–2004

and found that firms did not use discretionary accruals to manage earnings to meet or beat analysts’ forecasts.

Barniv (2009)studiedwhether or notanalyst expertiseand effortaffected earnings forecast accuracy differently forshares

traded only by Chinese investors than shares traded only by foreign investors. The results indicated that increased analyst

effort and expertise affected forecast accuracy more significantly for shares traded only by foreign investors. The study also

showed that forecast accuracy increased as foreign investor ownershipincreased. The author concluded that foreign investor

demand, spurred by access to less information, motivated analysts.

Yu (2010) tested the relationship between analyst forecast accuracy, forecast dispersion, analyst following, and the

governance disclosures in the annual reports of U.S. and non-U.S. firms. The evidence showed that analysts incorporated

the information from the governance disclosures in their earnings forecasts and improved their forecast performance when

there wasgreater corporategovernance disclosure. Theauthorconcluded that proposalsby regulatorsworldwideto enhance

corporate governance disclosures are important and should be mandatory.

3.1.6. Progress towards convergence

Larson and Street (2004) analyzed the progress towards convergence with IFRS in 17 European countries. At the time of

the study, the EU had decided that beginning in 2005, all listed companies in member states had to prepare consolidated

accounts based on IFRS. The authors used and updated the data collected by six international accounting firms in a 2002

study of convergence. The analysis revealed that few of the 17 countries studied intended to require IFRS for non-listed

companies. The authors concluded that a “two-standard” system of financial reporting was emerging in a majority of the 17

European countries.




De la Rosa, Crawford, andFranz(2004) described thedevelopment of theWarsaw Stock Exchange andPoland’saccounting

system for the period 1991–2000, a time of unprecedented political and economic change for this emerging market. They

determined that accounting and auditing regulation had accelerated and would continue to change as Poland prepared

to become a member of the European Union. They also analyzed the returns for publicly traded Polish firms during this

period and found that firms experienced a speculative bubble whether or not their financial statements were audited by an

international accounting firm.

Jermakowicz and Gornik-Tomaszewski (2006) surveyed publicly traded companies in the European Union to gain insight

into the process of implementing IFRS. Responses were received from 112 companies in 2004 that were early adopters of

IFRS. The results revealed that the major challenges to implementing IFRS included a lack of implementation guidance and

uniform interpretation of IFRS and a complex, costly, burdensome conversion process. The respondents believed that lower

costs of capital, an expected benefit of the change, would not occur if their subsidiaries were required to prepare financial

statements based on local GAAP that varied from IFRS.

Haverty (2006) investigated the convergence of IFRS and U.S. GAAP during the period 1996–2002 using a sample of com-

panies from China that were listed on the New York Stock Exchange. Because the Chinese companies in the sample prepared

IFRS financial statements and provided a limited reconciliation to U.S. GAAP, the author was able to examine differences

between two sets of accounting numbers prepared using different accounting standards. The study found progress had been

made towards convergence and harmonization but revealed material differences in reported net income. The author noted

that the revaluation of fixed assets under IFRS, which caused higher depreciation to be reported, was the most significant

reason for the lack of comparability.

Peng and van der Laan Smith (2010) performed a longitudinal analysis of the process of convergence of Chinese GAAP

with IFRS for the period 1992–2006. The study found that Chinese regulators directly imported standards from IFRS for

standards that were similar to those already in the Chinese accounting system. The Chinese regulators made progressive

changes to converge with IFRS standards that were significantlydifferent than those in the Chinese accounting system. Areas

in which convergence had not yet taken place included those in which IFRS permitted flexibility. The authors concluded that

the process was an effective, practical way to make the transition from accounting under a central government planning

model to accounting in a market-based model.

3.1.7. Other

Cormier and Magnan (2002) examined the performance reporting by oil and gas firms in Canada. The goals were to assess

how the firms’ financial reporting was affected by earnings management, to evaluate which performance metrics were

relevant for valuation purposes, and to determine if U.S. listing influenced managerial incentives for earnings management.

Their study found only weak evidence that oil and gas firms engaged in earnings management and determined that a U.S.

listing does lead to more conservative financial reporting. Their results also showed that, consistent with other research

findings, cash flow from operations was the dominant performance metric in valuing oil and gas firms.

Emmanuel and Oyelere (2002) examined the relative performances of foreign-controlled domestic companies operating

in the United Kingdom (U.K.) and U.K.-controlled domestic companies operating during the five-year period 1990–1994.

Their study revealed that foreign-controlled firms had significantly lower median profitability figures than U.K.-controlled

domestic companies of comparable size and industry. They posited that the foreign-controlled companies may be paying

higher prices for goods and services with added intangibles. Their findings corroborated those of earlier U.S. based studies.

Pinto (2003) examined U.S. utility companies that acquired foreign utilities after the enactment of the Energy Policy Act

in 1992 to determine the effect of international diversification on the performance and valuation of U.S.-based multinational

utility companies. Using an earning-and-book value model, the study showed that multinational utilities reported lower

absolute and relative rates of profitability than domestic utilities and had higher levels of systematic risk for the period

1996–2000. It also determined that book value had less influence on the valuation of multinational utilities than on domestic

utilities and earnings played a more important role for the valuation of multinationals. The results indicated that non-

accounting information appeared to be priced into the equities of multinational utilities compared to domestic utilities.

Nikkinen and Sahlström (2004) investigated the effect of accounting environment on the usefulness of cash flow predic-

tion models. They applied the cash flow prediction model used by Barth, Cram, and Nelson (2001) to two kinds of accounting

environments, one in which countries are market-oriented with legislation based on common-law and the other with coun-

tries that are bank-oriented with legislation based on code-law. The results suggested that the cash flow prediction model

performed consistently across countries, except for Germany, a bank-oriented country. They found that the effects of the

explanatory variables were similar in countries with high quality of accruals and different in countries with low quality of

accruals.

HassabElnaby and Mosebach (2005) examined whether a developing country used more accounting-based debt

covenants to control agency costs as it progressed towards becoming a market-based economy. The study analyzed 140

Egyptian debt agreements over three periods. The results showed that there was a significant increase in the use of

accounting-based debt covenants during each successive period of development, indicating that the culture accepted this

method of controlling the problems that develop with the separation of ownership and management. The authors concluded

that the national cultural dimensions changed significantly during the three periods of economic development.

In a study of an emerging economy, Mirshekary and Saudagaran (2005) presented evidence about the perceptions and

characteristics of seven different financial statement user-groups in Iran. The survey results showed that a majority of the




respondents, who included bank loan officers, stock brokers, auditors, tax officers, and bank investment officers as well as

institutional investors and academics, used annual reports and rated them as the most important source of information.

The income statement, auditors’ report, and the balance sheet were identified as the three most important sections of the

annual reports. The authors believed that the results of the survey would help accounting standard setters understand the

concerns of financial statement users in developing countries.

Anandarajan, Hasan, and Lozano-Vivas (2005) investigated the efficiency of loan loss decisions of bank managers in

Spain and the factors that were related to inefficient decisions. Using a stochastic frontier model, the study determined

that inefficiency in loan loss provisions increased after deregulation of the banking industry occurred in Spain. Commercial

banks listed in the market had greater loan loss inefficiency than mutually owned savings banks. Inefficiency was found

to decrease with size while higher capitalization was related to more efficient loan loss provisions. The authors noted the

results had important implications for regulators concerned about misstatement of bank income and overstatement of

capital.

McEnroe and Sullivan (2006) conducted a survey of U.S. individual investors to determine their attitudes concerning the

accounting requirements for foreign listings on U.S. exchanges and their perceptions of the promulgation of international

accounting standards. The results showed that an overwhelming majority of respondents believed that foreign firms should

either use U.S. GAAP or reconcile their financial statements to U.S. GAAP as a condition of listing on a U.S. market and should

be required to comply with the Sarbanes-Oxley Act to be listed. A very large majority of the respondents agreed that the

U.S. should control the accounting standards required for listing on U.S. markets while a majority believed that there should

be one global set of accounting principles for all companies on all exchanges. Over half the respondents indicated that an

international body with U.S. representation should develop the accounting standards.

3.2. Taxation

3.2.1. Tax rates

Buijink, Janssen, and Schols (2002) used information from financial statements to estimate the average effective tax

rates (ETR) for companies domiciled in European Union (EU) member states during the seven-year period 1990–1996. The

goal was to compare the effective tax rates with the corporate statutory taxes rate in the companies’ country of domicile

to determine the magnitude of tax incentives provided by countries in the EU. They found that the use of tax incentives,

beyond differences in statutory tax rates, differed substantially between EU member states and that the provision of the tax

incentives did not equalize corporate effective tax rates between EU member states.

Derashid and Zhang (2003) examined the association between effective tax rates and a number of factors, including firm

size and industrial sector, for Malaysian firms in the period 1990–1999. They compared their results for a large, developing

country with the results from prior studies of U.S. effective tax rates. The study found that the association between ETR and

leverage, inventory intensity, and capital intensity of Malaysian companies was consistent with the results of prior studies

of U.S. firms. The results indicated, however, that unlike prior U.S. studies, industry sector was associated with the effective

tax rates paid by firms in Malaysia. They found no evidence that large Malaysian firms paid higher effective tax rates than

small firms, due in part to the industrial policies adopted by Malaysia. The study also determined that after adjusting for size

and sector effects, efficient firms, those with high return on assets, had significantly lower effective tax rates while growth

firms had significantly higher effective tax rates. The authors concluded that the results from Malaysia were consistent with

the “industrial policy hypothesis” of effective tax rates rather than the “political cost hypothesis.”

Simmons (2006) presented evidence concerning the existence of international corporate tax competition. The analysis

of trends in corporate tax rates showed declining and converging statutory and effective corporate tax rates. Analysis of tax

revenue data, however, provided little evidence that tax competition exists.

Haverals (2007) investigated the impact of the adoption of International Financial Reporting Standards on the effective

tax rates of companies in Belgium. The results showed that the use of the international accounting standards as the base for

tax purposes increased the tax burdens of companies in Belgium. The author concluded that companies in European Union

countries would also experience increases in the effective corporate tax rates if a common tax base was adopted using the

International Financial Reporting Standards. The author noted, however, that concerns about tax competition would not be

reduced unless there also was a convergence of corporate income tax rates.

Chen and Hung (2010) used a sample of Chinese listed companies to investigate the determinants of implicit taxes in

an emerging economy. The study found a negative association between tax subsidies and pre-tax return on equity. It also

found that the negative relationship was moderated by economic growth and capital investment growth rates. The results

indicated that ownership structure, state versus private, moderated the effect of growth on the realization of implicit taxes.

3.2.2. Tax compliance

Riahi-Belkaoui (2004) evaluated the relationship between tax compliance and tax morale in 30 countries. The study

focused on the relationship between determinants of tax morale, such as the level of economic freedom, competition laws,

and equity markets, and their impact on tax compliance. The results indicated that tax compliance was highest in countries

with high economic freedom, an important equity market, effective competition laws, and low serious crime rates. The

author concluded that the institutional and moral climates of a country affect tax compliance and should be considered by

tax authorities internationally.




Richardson (2006) looked at data for 45 countries to determine which non-economic factors were the most impor-

tant determinants of tax evasion. The results of the regression models showed that the level of tax complexity was the

most important determinant. Education, income source, and perceptions of fairness were significant variables associ-

ated with tax evasion. The author noted that governments should use the results to design strategies to minimize tax

evasion.

Tsakumis, Curatola, and Porcano (2007) examined the levels of tax compliance in 50 countries to determine the influence

of national culture on compliance. The study looked at the relationship of four cultural dimensions suggested by Hofstede

(1980) to the level of tax evasion. The results showed that the dimensions of higher uncertainty avoidance and power

distance were associated with higher tax evasion levels while higher individualism and higher masculinity were associated

with lower tax evasion across countries. The authors suggested that policy makers consider the cultural values of their

countries when devising tax compliance regulation.

Richardson (2008) extended the work of Tsakumis et al. (2007) by including legal, political, and religious variables in

the examination of the relationship between national cultural dimensions and tax evasion in 47 countries. The results

indicated that higher levels of tax evasion were associated with higher levels of uncertainty avoidance and lower levels

of individualism, legal enforcement, trust in government, and religiosity. The author suggested that the results will help

governments devise policies to reduce tax evasion if they consider legal, political, religious as well as cultural perspectives

in evaluating the likelihood of tax evasion.

Borkowski (2008) used a survey of transnational corporations’ tax directors to examine the influence of the Pacific

Association of Tax Administrators (PATA) on tax authorities in Australia, Canada, Japan, and the U.S. and the effect on

transnational corporations’ tax evasion activities. The results showed that the activities of PATA enhanced consistency in

the countries’ approaches toward transfer-pricing documentation. The evidence also indicated that PATA had little effect on

the transfer-pricing activities of transnational corporations.

Wunder (2009) presented evidence concerning the current state of tax risk management by multinational companies. A

survey of the chief financial officers of non-U.S. multinational and U.S. multinational firms revealed that large multinationals

have developedpoliciesto managegeneral risk as well as taxrisk.The U.S. andforeign multinationals hadsimilarassessments

of the tax risks. Both types of companies reported that transnational risk was the most significant risk while transfer pricing

presented the most serious tax provision risk.

Borkowski (2010) surveyed taxexecutives in four countriesto determinewhether or nottransfer-pricing auditsincreased

as a result of PATA transfer-pricing guides. The evidence disclosed that demographic factors and tax audit risk were related.

Audit risk was significantly associated with a multinational corporation’s audit history, country of domicile, transfer-pricing

methods, and industry. The study also revealed a significant relationship between behavioral factors, such as preferences

for arbitration, and tax audit risk. The results showed that negotiation of an advance pricing agreement did not reduce the

risk of a tax audit.

3.2.3. Other

Simmons (2003) analyzed the relationship between countries’ corporate tax regimes and the level of foreign direct

investment flowing into the countries. He sent a questionnaire to a sample of tax professionals from seven countries that

had a wide variety of corporate tax systems and asked the respondents to evaluate the attractiveness of the countries’

corporate tax system attributes. He also asked them to indicate the level of attractiveness to potential overseas investors.

The results of the survey were used to create an index of corporate tax system attributes that ranged from those that were

not at all attractive to those that were extremely attractive. The relationship between the indices and measures of the

foreign direct investment inflows was then tested. The study revealed a statistically significant positive correlation between

overall corporate tax attractiveness and foreign direct investment. The results provided additional support that host country

corporate tax systems influence the level of foreign direct investment inflows.

Martin, Novack, and Pereira (2009) used portfolio analysis to test whether U.S. multinational firms with large foreign

investments experienced significantly positive returns following enactment of a tax law that reduced the cost of repatriating

earnings. The results showed thatfirms withunrepatriated foreign earnings experiencedsignificantlypositive returns around

the enactment date indicating that the legislation was good news for multinational firms.

3.3. Auditing

3.3.1. Analytical procedures

Lin and Frazer (2003) sent surveys to external auditors from 52 Canadian accounting firms to determine the extent of use

of analytical procedures versus traditional audit approaches based on substantive testing. They determined that analytical

procedures were used in practice by Canadian firms of allsizes andextensively by larger firms. Their results werecomparable

to prior studies of the use of analytical procedures by U.K. and U.S. auditing firms. The results also indicated that regardless

of firm size, analytical procedures were used extensively during the final review stage of the audit. The study determined,

however, that the efficiency gains that auditors hoped to achieve through the use of analytical procedures rather than tests

of detail were achieved only partially at the time of the study.

Hughes, Sander, Higgs, and Cullinan (2009) conducted an experiment to determine the effect of culture on entry-level

auditors’ use of analytical procedures. Using accountancy students in Mexico and the U.S. as proxies for entry-level auditors,




they analyzed whether differences in the cultural dimensions of power distance, uncertainty avoidance, and individualism

affected expectations of current year balances and assessment of risk of material misstatement. The results showed that the

ability to form expectations about account balances was not related to differences in culture. The study also found that for

both groups, the assessment of risk was not consistent with expectations but instead with the nature of changes in account

balances.

3.3.2. Audit committees

Chau and Leung (2006) studied the relationship between the existence of audit committees of publicly traded firms

in Hong Kong and the corporate governance attributes of family shareholding, non-executive directors, and independent

chairmen. The study found a positive association between the percentage of independent non-executive directors on a

board and the existence of an audit committee. The results indicated that the existence of an audit committee depended on

the level of family shareholding and that the positive association between independent directors and the existence of an

audit committee was stronger for firms with independent chairmen. The authors noted that the results would help stock

exchanges in their deliberations about independent chairmen and audit committees, especially in emerging markets where

there is a high level of family ownership in firms.

Jaggi and Leung (2007) analyzed whether or not the voluntary establishment of audit committees constrained earnings

management in Hong Kong firms. Using a three-stage regressionmodel, they determined that theuse of audit committees had

a significant impact on limiting earnings management even when there was high family ownership. They found, however,

that when family members dominated corporate boards, the effectiveness of audit committees in monitoring earnings

management was significantly reduced.

3.3.3. Audit expectations gap

Haniffa and Hudaib (2007) examined if perceptions of audit performance by users and auditors differed in Saudi Arabia.

They used surveys and interviews of auditors and financial statement users to determine if institutional and cultural factors

influenced perceptions of audits. The results showed that an audit expectation-performance gap existed in Saudi Arabia.

Auditors believed that the gap was caused by the limited scope of audits and deficient standards while users believed the

cause was substandard performance by auditors. Evidence was presented that societal values and factors in the business

environment that were beyond the control of the auditing profession hindered the effective performance of the audit.

Hassink, Bollen, Meuwissen, and Vries (2009) analyzed the nature of the audit expectations gap in corporate fraud

cases using a survey of Dutch bankers, business managers, and auditors. The study determined that a substantial audit

expectations gap existed concerning the auditors’ responsibilities and performance as stipulated in the standards. Business

managers were less likely than bankers to view auditors’ performance as substandard and identified fewer areas in which

auditing standards need to be revised. The results also showed that business managers and bankers had higher expectations

of the duty of auditors than auditors considered their duties to be and had unreasonable expectations concerning auditor

responsibilities to detect non-material fraud or fraud from collusion.

3.3.4. Auditor choice and auditor fees

Lin and Liu (2009) examined the effect of corporate governance on auditor choice in China. Using logit regression, they

analyzed the association between the choice of auditors made by Chinese companies with initial public offerings and own-

ership concentration, size of the supervisory board, and duality of the roles of chairman and CEO. The results showed that

Chinese firms with weaker corporate governance mechanisms exhibited by higher ownership concentration, smaller super-

visory boards, and duality of roles were less likely to hire high quality auditors. The authors recommended improvements

in the corporate governance of listed firms in China to promote confidence in the Chinese listed market.

Wang and Iqbal (2009) analyzed the audit market in China to determine the variables affecting audit fees paid by publicly

traded companies that issued both foreign and domestic shares. The results indicated that brand name and industry special-

ization were associated with higher prices paid to Big 4 international accounting firms for both statutory and supplementary

audits. The results also showed that second-tier international accounting firms with specialized industry knowledge did not

earn higher fees. The authors noted that their results could help firms price their services in China.

Behn, Lee, and Jin (2009) studied whether or not increased competition in the Korean audit market led to audit fee

discounting. Using disclosed audit fee data for Korean companies for the period 1999–2004, they determined that although

audit fees per hour decreased, total audit fees increased. They also found that the fees charged by the big international

accounting firms were lower per hour than other auditing firms and decreased over time. Discounting to obtain initial audit

engagements was also uncovered in the Korean audit market. The authors recommended that Korean regulators take steps

to ensure that high quality audits are maintained in this price competitive market.

Ho and Hutchinson (2010) used a questionnaire and a review of annual reports to determine whether or not there is

a relationship between annual audit fees and the existence of internal audit departments. The results showed that lower

audit fees are associated with larger internal audit departments. They also determined that lower audit fees are associated

with certain internal audit department functions such as fraud investigations, systems development and maintenance, and

internal control reviews. The authors noted that the results extend the literature on the relationship betweenexternal audits

and internal audits to a business environment characterized by concentrated ownership and majority/minority shareholder

conflict.




3.3.5. Other

Lin, Tang, and Xiao (2003) conducted an experiment to determine if the issuance of a qualified auditor opinion affected

users’ understanding and use of financial statements in China. Their results indicated that Chinese credit and loan offi-

cers perceived a qualified auditor opinion to have a negative impact on the credibility of financial statements. No significant

differences werefound in users’ investment or credit decisions with respect to financial statements with qualified or unqual-

ified audit opinions. The study determined that U.S.-style qualified audit reports had limited information content to users

in China. The authors suggested that there was a need to improve Chinese auditing standards.

Chung, Farrar, Puri, and Thorne (2010) evaluated the status, after enactment of the Sarbanes-Oxley Act, of auditors’ legal

liability to third parties in seven countries. The results indicated that the legal regimes in the countries studied were related

to the changes made to auditor liability in those countries. Two civil law countries, Germany and France, made no changes to

increase auditor liabilityto third parties while thefive commonlaw countriesin thestudy enacted comprehensive legislation

to increase auditors’ liability to third parties.

3.4. Managerial accounting

Helliar, Lonie, Power, and Sinclair (2002) conducted a comprehensive survey of accountants and managers in a large

number of U.K. businesses to determine their attitudes toward risk. Theyfound that although accountants’ views of risk were

similar to those of business managers, their attitudes toward and attempts to control risk depended on both quantitative

and qualitative factors. The results indicated that loss-aversion was often the most important concern to both groups. They

recommended that companies appoint a senior executive to develop an overall assessment of risk for the firm, put in place

formal risk management procedures, and create lines of communication between companies and stakeholder groups so that

risk information can be disseminated.

Collins, Holzmann, and Mendoza (2005) conducted a study of U.S. management accountants and Latin American business

people to determineif cultural origin predictedmacho stereotypes andwhether these stereotypes affected attitudestowards

thebudgetingprocess. Using theresults of a questionnaire anda LISREL structural equation technique,they found differences

in the macho attitudes of the two groups. The Latin American group displayed chauvinistic or classic macho tendencies

while the U.S. group showed aggressive macho tendencies. The results also indicated that the chauvinistic macho group

followed budgetary procedures, although in a risky manner. The classic macho group accepted personal responsibility for

budgetary results and worked harder to achieve them, behavior that was consistent with the classic macho traits of honor

and self-reliance. The aggressive macho group was positively associated with budgetary risk-seeking that may or may not

have benefitted the company. The authors noted that understanding the cultural effects on attitudes towards budgeting is

important as more trade is conducted between the U.S. and Latin America.

Douglas, HassabElnaby, Norman, and Wier (2007) investigated the budgetary behaviors of Egyptian managers who

worked for U.S. firms in Egypt and Egyptian managers who worked for Egyptian firms to determine the effect of national

culture and ethical position on budgetary systems. The results of the survey of 300 managers showed that the national cul-

ture of the home country of a firm appeared to influence budgetary design variables and the ethical positions of managers

in their foreign operations. The study found that Egyptian managers of U.S. firms had higher levels of participation in setting

budgets and more incentives to create slack in budgets than their Egyptian counterparts. The results showed that Egyptian

managers of U.S. firms in Egypt were also less idealistic than the Egyptian managers of Egyptian companies. The authors

suggested that the results could help multinational firms operating in other foreign countries create effective systems of

multinational organizational controls.

Huang and Chen (2009) investigated the relationship between budgetary attitudes in Taiwan, leadership behavior, and

managerial budgeting games. The survey of over 200 Taiwanese accounting and finance managers showed that positive

feedback from supervisors had a direct positive effect on managers’ budgetary attitudes while negative feedback had no

effect on the attitudes. The results also indicated that the use of non-straight forward tactics to obtain higher budgets had a

negative effect on attitudes toward the budget process while the use of straight forward or economic tactics combined with

positive feedback resulted in better attitudes toward the budgeting process. The authors noted that the findings would help

multinational corporations operating in Taiwan adopt effective leadership behavior in preparing budgets.

3.5. Accounting information systems (AIS)

Adhikari, Lebow, and Zhang (2004) surveyed multinational U.S. companies to determine the relationships among firm

characteristics, such as size and degree of internationalization, international features of accounting software, such as multi-

reporting, multi-lingual, and multi-currency functionality, and general selection criteria, such as cost and flexibility. The

results indicated that the size and degree of internationalization of business affected preferences for international software

features while firm characteristics did not have a significant effect on the general selection criteria.

3.6. Special studies

In a special study, Adhikari et al. (2002) analyzed the international accounting research in the Journal of International

Accounting, Auditing and Taxation for the period 1992–2001. Their results indicated that the research published in the




journal spanned a broad array of topics, used several methodologies, and included studies conducted by co-authors in

and outside the U.S. They concluded that the journal was an important forum to promote and disseminate international

accounting research.

In a special study, Street and Gray (2002) summarized the results of a research monograph sponsored by the Association

of Chartered Certified Accountants (ACCA). Theresearch examined the1998 financial statements andfootnotes of a sampleof

companies worldwide to assess the extent of compliance with International Accounting Standards and determine the factors

associated with compliance. The authors noted that there was a significant level of non-compliance in 1998, especially in

the area of IAS disclosures, and identified the key factors associated with the levels of compliance.

In a set of special studies, Street (2002, 2006) discussed the steps taken toward global convergence of accounting stan-

dards. The 2002 study provided an overview of GAAP 2001, a survey by the world’s seven largest accounting firms that

analyzed the progress made toward convergence of national accounting standards with international accounting standards.

The study looked at 62 countries and determined that only one-third had taken steps toward convergence while half of the

countries had not implemented or proposed standards to reduce significant differences between national and international

accounting standards.

The 2006 study reported on the relationship over time between representatives of the national accounting standard

setters in the U.S., U.K., Canada, Australia, and New Zealand (G4) and the International Accounting Standards Commit-

tee (IASC) and the significance of the partnership between the G4 and the International Accounting Standards Board. The

author stressed that the relationship between the national accounting standard setters and the IASB must be maintained if

convergence to high-quality global accounting standards is to be attained.

A special study by Fasshauer, Glaum, and Street (2008) provided a summary of ACCA research that analyzed the defined

benefit pension plan disclosures made by companies on 20 European exchanges. The study provided evidence of a lack of

comparability on the balance sheet from allowing choices in how to recognize actuarial gains and losses on defined benefit

plans.

4. Conclusion

This article analyzes and reviews the international accountingresearch published in the Journal of InternationalAccounting,

Auditing and Taxation during the period 2002–2010. The 82 articles and six special studies published investigated new ideas

and extended prior research that took on new importance as the profession changed over time.

Papers dealing with financial accounting and reporting comprised the majority of publications during the 2002–2010

period. Research on the value relevance of various standards or practices was the predominant focus of these articles. Studies

dealing with the progress and problems of convergence increased in frequency as more countries adopted or announced

plans to adopt IFRS. Although much of the research highlighted accounting issues in Europe, Australia, and North America,studies focusing on China and emerging economies were published with increasing frequency as these countries became

more significant players in the world economy.

Research in the areas of taxation and auditing made up a sizable percentage of the publications throughout 2002–2010.

Comparisons of effective tax rates and policies to increase tax compliance were the focus of a large percentage of the tax

research and continue to provide opportunities for future research. Articles dealing withinternational managerialaccounting

practices appeared relatively infrequently. As firms continue to expand their multinational operations in other regions of

the world, research dealing with how differences in culture and legal/regulatory environments affect managerial practices

will remain important to accounting practitioners and academics.

The publication of single country studies increased in frequency in the period 2002–2010 as more countries adopted IFRS.

As further progress toward the goal of convergence is realized, the frequency of single country studies should decrease with

greater emphasis being placed on multi-country perspectives of accounting issues. As the American Institute of Certified

Public Accountants (AICPA) noted in the background report of IFRS provided on the website www.IFRS.com, the adoption

of IFRS will affect accountants and companies in ways far beyond the impact on financial statements. Adoption of IFRSwill require changes to firms’ information systems, tax reporting systems, and employee training programs, among other

functions. These changes will provide new avenues for international accounting research.

References

Abd-Elsalam, O. H., & Street, D. L. (2007). Corporate governance and the timeliness of corporate internet reporting by U.K. listed companies. Journal of International Accounting, Auditing and Taxation, 16, 111–130.

Abd-Elsalam, O. H., & Weetman, P. (2003). Introducing international accounting standards to an emerging capital market: Relative familiarity and languageeffect in Egypt. Journal of International Accounting, Auditing and Taxation, 12, 63–84.

Adhikari, A., Lebow, M. I., & Zhang, H. (2004). Firm characteristics and selection of international accounting software. Journal of International Accounting, Auditing and Taxation , 13, 53–69.

Adhikari, A., Tondkar,R. H., & Hora, J. A. (2002). An analysis of international accounting research in Journal of International Accounting Auditing & Taxation:1992–2001. Journal of International Accounting, Auditing and Taxation, 11, 39–49.

Anandarajan, A., Hasan, I., & Lozano-Vivas, A. (2005). Loan loss provision decisions: An empirical analysis of the Spanish depository institutions. Journal of International Accounting, Auditing, and Taxation, 14, 55–77.

http://www.ifrs.com/

http://www.ifrs.com/




Barniv, R. (2009). Does foreign investor demand for information affect forecast accuracy? Evidence from the Chinese stock markets. Journal of International Accounting, Auditing and Taxation, 18, 101–118.

Barth, M., Cram, D., & Nelson, K. (2001). Accruals and the prediction of future cash flows. Accounting Review, 76, 27–58.Behn, B. K., Lee, J. W., & Jin, L. H. (2009). An empirical analysis of audit fee price competition after the Korean 1999 Omnibus Cartel Repeal Act. Journal of

International Accounting, Auditing and Taxation, 18, 132–140.Borkowski, S. C. (2008). The history of PATA and its effect on advance pricing arrangements and mutual agreement procedures. Journal of International

Accounting, Auditing and Taxation, 17 , 31–50.Borkowski, S. C. (2010). Transfer pricing practices of transnational corporationsin PATA countries. Journal of International Accounting, Auditing and Taxation,

19, 35–54.Buijink, W., Janssen, B., & Schols, Y. (2002). Evidence of the effect of domicile on corporate average effective tax rates in the European Union. Journal of

International Accounting, Auditing and Taxation, 11, 115–130.Callao, S., Jarne,J. I., & Lainez, J. A. (2007). Adoption of IFRS in Spain:Effecton thecomparabilityand relevance of financial reporting. Journal of International

Accounting, Auditing and Taxation, 16, 148–178.Chalmers, K., & Godfrey, J. M. (2005). Expensing stock-based payments: A material concern? Journal of International Accounting, Auditing, and Taxation, 14,

157–173.Chau, G.,& Gray, S. J.,2010.Family ownership, board independence andvoluntary disclosure: Evidence from Hong Kong. Journal of International Accounting,

Auditing, and Taxation, 19.Chau, G., & Leung, P. (2006). The impact of board composition and family ownership on audit committee formation: Evidence from Hong Kong. Journal of

International Accounting, Auditing, and Taxation, 15, 1–15.Chen, M., & Hung,C. (2010). The effects of macroeconomic factors on implicittaxes:Evidencefrom an emerging economy. Journal of International Accounting,

Auditing, and Taxation , 19.Chung, J., Farrar, J., Puri, P., & Thorne, L. (2010). Auditor liability to third parties after Sarbanes-Oxley: An international comparison of regulatory and legal

reforms. Journal of International Accounting, Auditing and Taxation, 19, 66–78.Chung, R., Ho, S., & Kim, J. (2004). Ownership structure and the pricing of discretionary accruals in Japan. Journal of International Accounting, Auditing and

Taxation, 13, 1–20.Collins,F., Holzmann, O., & Mendoza,R. (2005). The relationshipbetweenmachistictendencies andbudgeting: A cross-cultural study. Journal of International

Accounting, Auditing, a nd Taxation, 14, 139–156.

Coppens, L., & Peek, E. (2005). An analysis of earnings management by European private firms. Journal of International Accounting, Auditing, and Taxation,14, 1–17.

Cormier, D., & Magnan, M. (2002). Performance reporting by oil and gas firms: Contractual and value implications. Journal of International Accounting, Auditing and Taxation , 11, 131–153.

De laRosa,D., Crawford,D., & Franz,D. R. (2004). Trading onthe Warsawstock exchange– from reopening in1991–2000. Journal of International Accounting, Auditing and Taxation , 13, 121–134.

Derashid, C., & Zhang, H. (2003). Effective tax rates and the “industrial policy” hypothesis: Evidence from Malaysia. Journal of International Accounting, Auditing and Taxation , 12, 45–62.

Douglas, P. C., HassabElnaby, H., Norman, C. S., & Wier, B. (2007). An investigation of ethical position and budgeting systems: Egyptian managers in US andEgyptian firms. Journal of International Accounting, Auditing and Taxation, 16, 90–109.

Emmanuel, C. R., & Oyelere, P. B. (2002). Differences in the reported performances of foreign-controlled and domestically-controlled firms: Some U.K.evidence. Journal of International Accounting, Auditing and Taxation, 11, 1–17.

Fasshauer, J. D., Glaum, M., & Street, D. L. (2008). Adoption of IAS 19R by Europe’s premier listed companies: Corridor approach versus fullrecognition—Summary of an ACCA research monograph. Journal of International Accounting, Auditing and Taxation , 17 , 113–122.

Fox, A., Grinyer, J., & Russell, A. (2003). Incompatible theoretical bases underlying accounting standards. Journal of International Accounting, Auditing andTaxation, 12, 169–184.

Gjerde, O.,Knivsfla, K.,& Saettem,F. (2008).The value-relevance ofadoptingIFRS:Evidence from145 NGAAP restatements. Journal of International Accounting,

Auditing and Taxation , 17 , 92–112.Goodwin, J., & Ahmed, K. (2006). Longitudinal value relevance of earnings and intangible assets: Evidence from Australian firms. Journal of International

Accounting, Auditing, a nd Taxation, 15, 72–91.Habib,A. (2008). Theroleof accruals and cash flows in explaining security returns: Evidence from NewZealand. Journal of International Accounting, Auditing

and Taxation, 17 , 51–66.Habib, A., & Hossain, M. (2008). Do managers manage earnings to ‘just meet or beat’ analyst forecasts? Evidence from Australia. Journal of International

Accounting, Auditing and Taxation, 17 , 79–91.Haniffa, R., & Hudaib, M. (2007). Locating audit expectations gap within a cultural context: The case of Saudi Arabia. Journal of International Accounting,

Auditing and Taxation , 16, 179–206.HassabElnaby, H. R., & Mosebach, M. (2005). Cultures’ consequences in controlling agency costs: Egyptian evidence. Journal of International Accounting,

Auditing, and Taxation , 14, 19–32.Hassink, H. F. D.,Bollen, L. H., Meuwissen, R. H. G., & Vries, M. J. (2009). Corporate fraud andthe audit expectationsgap: A study amongbusinessmanagers.

Journal of Internat ional Accounting, A uditing and Taxation , 18, 85–100.Haverals, J. (2007). IAS/IFRS in Belgium: Quantitative analysis of the impact on the tax burden of companies. Journal of International Accounting, Auditing

and Taxation, 16, 69–89.Haverty, J. L. (2006). AreIFRS andU.S. GAAP converging?Someevidence from People’s Republic of China companieslisted onthe NewYorkStockExchange.

Journal of Internat ional Accounting, A uditing, and Taxation , 15, 48–71.

Helliar, C. V., Lonie, A. A., Power, D. M., & Sinclair, C. D. (2002). Managerial attitudes to risk: A comparison of Scottish chartered accountants and U.K.managers. Journal of International Accounting, Auditing and Taxation, 11, 165–190.

Ho, S., & Hutchinson, M. (2010). Internal audit department characteristics/activities and audit fees: Some evidence from Hong Kong firms. Journal of International Accounting, Auditing and Taxation, 19.

Hodgdon, C., Tondkar, R. H., Harles, D. W., & Adhikari, A. (2008). Compliance with IFRS disclosure requirements and individual analysts’ forecast errors. Journal of Internat ional Accounting, A uditing and Taxation , 17 , 1–13.

Hofstede, G. (1980). Culture’s consequences: International differences in work-related values . London: Sage Publications.Hora, J. A., Tondkar, R. H., & McEwen, R. A. (2004). Does trading volume detect information content in earnings reconciliations of foreign firms? Journal of

International Accounting, Auditing and Taxation, 13, 71–87.Hossain, M., & Marks, B. R. (2005). Information content of mandatory quarterly foreign sales data of U.S. multinational companies under SFAS 131. Journal

of International Accounting, Auditing, and Taxation, 14, 105–120.Huang, C., & Chen, M. (2009). Relationships among budgetary leadership behavior, managerial budgeting games, and budgetary attitudes: Evidence from

Taiwanese corporations. Journal of International Accounting, Auditing and Taxation, 18, 73–84.Hughes, S. B., Sander, J. F., Higgs, S. C., & Cullinan, C. P. (2009). The impact of cultural environment on entry-level auditors’ abilities to perform analytical

procedures. Journal of International Accounting, Auditing and Taxation, 18, 29–43.Iatridis, G., & Rouvolis, S. (2010). The post-adoption effects of the implementation of International Financial Reporting Standards in Greece. Journal of

International Accounting, Auditing and Taxation, 19, 55–65.




Jaggi, B., & Leung, S. (2007). Impact of family dominance on monitoring of earnings management by audit committees: Evidence from Hong Kong. Journalof International Accounting, Auditing and Taxation , 16, 27–50.

Jermakowicz, E. K., & Gornik-Tomaszewski, S. (2006). Implementing IFRS from the perspective of EU publicly traded companies. Journal of International

Accounting, Auditing and Taxation, 15, 170–196.Kang,T. (2003). The association between legal regime and the value-relevance of accounting information:A Japan–U.K. comparison. Journal of International

Accounting, Auditing and Taxation, 12, 121–130.Lajili, K., & Zéghal, D. (2005). Labor cost voluntary disclosures and firm equity values: Is human capital information value-relevant? Journal of International

Accounting, Auditing, and Taxation, 14, 121–138.Landry, S., & Callimaci, A. (2003). The effect of management incentives and cross-listing status on the accounting treatment of R & D spending. Journal of

International Accounting, Auditing and Taxation, 12, 131–152.

Larson, R. K., & Street, D. L. (2004). Convergence with IFRS in an expanding Europe: Progress and obstacles indentified by large accounting firms’ survey. Journal of International Accounting, Auditing and Taxation , 13, 89–119.

Lin, K. Z., & Frazer, I. A. M. (2003). Theuse of analyticalprocedures by external auditors in Canada. Journal of International Accounting, Auditing and Taxation,12, 153–168.

Lin, Z. J., & Chen, F. (2005). Value relevance of international accounting standards harmonization: Evidence from A- and B-share markets in China. Journalof International Accounting, Auditing, and Taxation , 14, 79–103.

Lin, Z. J., & Liu, M. (2009). The impact of corporate governance on auditor choice: Evidence from China. Journal of International Accounting, Auditing andTaxation, 18, 44–59.

Lin, Z. J.,Tang,Q., & Xiao, J. (2003). An experimentalstudyof users’responses to qualified audit reports in China. Journal of International Accounting, Auditing and Taxation, 12, 1–22.

Machuga, S., & Teitel, K. (2009). Board of director characteristics and earnings quality surrounding implementation of a corporate governance code inMexico. Journal of International Accounting, Auditing and Taxation, 18, 1–13.

Martin, X., Novack, G., & Pereira, R. (2009). Firms’ share price reactions to The American Jobs Creation Act. Journal of International Accounting, Auditing andTaxation, 18, 141–151.

McEnroe, J. E., & Sullivan, M. (2006). Individual investors’ attitudes towards listing requirements for foreign entities on U.S. stock exchanges and thepromulgation of international accounting standards. Journal of International Accounting, Auditing and Taxation, 15, 215–225.

Mohd Ghazali, N. A., & Weetman, P. (2006). Perpetuating traditional influences: Voluntary disclosure in Malaysia following the economic crisis. Journal of

International Accounting, Auditing and Taxation, 15, 226–248.Myring, M. (2006). The relationship between returns and unexpected earnings: A global analysis by accounting regimes. Journal of International Accounting,

Auditing, and Taxat ion, 15, 92–108.Nichols, L. M., & Buerger, K. H. (2002). An investigation of the effect of valuation alternatives for fixed assets on the decisions of statement users in the

United States and Germany. Journal of International Accounting, Auditing and Taxation , 11, 155–163.Nichols, L. M., & Street, D. L. (2007). The relationship between competition and business segment reporting decisions under the management approach of

IAS 14 revised. Journal of International Accounting, Auditing and Taxation, 16, 51–68.Nikkinen,J., & Sahlström, P. (2004). Impactof an accounting environmenton cash flowprediction. Journal of International Accounting, Auditing and Taxation,

13, 39–52.Olibe, K. O. (2002). The information content of annual general meetings: A price and trading volume analysis. Journal of International Accounting, Auditing

and Taxation, 11, 19–37.Olibe, K. O. (2006). The incremental information content of non-US GAAP earnings disclosures: Evidence of UK firms. Journal of International Accounting,

Auditing and Taxation , 15, 197–214.Peng,S., & vanderLaanSmith,J. (2010). Chinese GAAP IFRS:An analysisof theconvergenceprocess. Journal of International Accounting, Auditing and Taxation,

19, 16–34.Petersen, C., & Plenborg, T. (2006). Voluntary disclosure and information asymmetry in Denmark. Journal of International Accounting, Auditing, and Taxation,

15, 127–149.

Pinto, J. M. (2003). Equity valuation in a changing institutional climate: Evidence from multinational utilities. Journal of International Accounting, Auditing and Taxation, 12, 23–43.

Riahi-Belkaoui, A. (2004). Relationship between tax compliance internationally and selected determinantsof tax morale. Journal of International Accounting, Auditing and Taxation , 13, 135–143.

Richardson, G. (2006). Determinants of tax evasion: A cross-country investigation. Journal of International Accounting, Auditing, and Taxation, 15,150–169.

Richardson, G. (2008). The relationship between culture and tax evasion across countries: Additional evidence and extensions. Journal of International Accounting, Auditing and Taxation, 17 , 67–78.

Securities and Exchange Commission. (2010). Commission statement in support of convergence and global accounting standards. Release Nos. 33-9109and 34-61578.

Seese, L. P., & Doupnik, T. S. (2003). The materiality of country-specific geographic segment disclosures. Journal of International Accounting, Auditing andTaxation, 12, 85–103.

Shuto, A. (2007). Executive compensation and earnings management: Empirical evidence from Japan. Journal of International Accounting, Auditing andTaxation, 16, 1–26.

Shuto, A., Otomasa,S., & Suda,K. (2009). The relativeand incrementalexplanatorypowers of dirty surplus items for deptinterestrate. Journal of International Accounting, Auditing and Taxation, 18, 119–131.

Simmons,R. S. (2003). An empirical studyof the impact of corporate taxationon theglobal allocation of foreign direct investment: A broad taxattractiveness

index approach. Journal of International Accounting, Auditing and Taxation , 12, 105–120.Simmons,R. S. (2006). Doesrecent empirical evidence support the existence of international corporate tax competition? Journal of International Accounting,

Auditing, and Taxat ion, 15, 16–31.Street, D. L. (2002). GAAP 2001 – Benchmarking nationalaccounting standards against IAS: Summary of results. Journal of International Accounting, Auditing

and Taxation, 11, 77–90.Street, D. L. (2006). The G4’s role in the evolution of the international accounting standard setting process and partnership with the IASB. Journal of

International Accounting, Auditing, and Taxation, 15, 109–126.Street, D. L., & Cereola, S. (2004). Stock option compensation: Impact of expense recognition on performance indicators of non-domestic companies listed

in the U.S. Journal of International Accounting, Auditing and Taxation, 13, 21–37.Street, D. L., & Gray, S. J. (2002). Factors influencing the extent of corporate compliance with International Accounting Standards: Summary of a research

monograph. Journal of International Accounting, Auditing and Taxation , 11, 51–76.Street, D. L.,& Nichols,N. B. (2002). LOB andgeographic segment disclosures: An analysis of theimpact of IAS14 revised. Journal of International Accounting,

Auditing and Taxation , 11, 91–113.Tsakumis,G. T., Curatola,A. P., & Porcano,T. M. (2007). Therelationbetweennational culturaldimensionsand taxevasion. Journal of International Accounting,

Auditing and Taxation , 16, 131–147.Tsakumis, G. T., Doupnik, T. S., & Seese, L. P. (2006). Competitive harm and geographic area disclosure under SFAS 131. Journal of International Accounting,

Auditing, and Taxat ion, 15, 32–47.




Wang, K. O. S., & Claiborne, M. C. (2008). Determinants and consequences of voluntary disclosure in an emerging market: Evidence from China. Journal of International Accounting, Auditing and Taxation, 17 , 14–30.

Wang, K. O. S., & Iqbal, Z. (2009). Audit pricing and auditor industry specialization in an emerging market: Evidence from China. Journal of International

Accounting, Auditing and Taxation, 18, 60–72.Wunder, H. F. (2009). Tax risk management and the multinational enterprise. Journal of International Accounting, Auditing and Taxation , 18, 14–28.Yu, M. (2010). Analyst forecast properties, analyst following and governance disclosures: A global perspective. Journal of International Accounting, Auditing

and Taxation, 19, 1–15.

a review and analysis of international accounting research in jiaat 2002 2010 2010 journal of...

Documents