The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act

Julia Zicke () and Florian Kiy ()
Additional contact information
Julia Zicke: SAP SE
Florian Kiy: Goethe-University Frankfurt am Main

Business Research, 2017, vol. 10, issue 2, No 3, 215-248

Abstract: Abstract This study investigates whether the 2009 German Accounting Law Modernization Act has affected the reporting and accounting practices of German private firms. In reforming German accounting standards, numerous accounting options were deleted, several accounting rules were transferred from IFRS to German GAAP with some modifications, and disclosure requirements were extended. In our analysis, we examine the changes in financial reporting and their effects on disclosures. We use four financial reporting property measures: discretionary accruals, the correlation between operating cash flow and accruals, the persistence of earnings, and the predictability of earnings. The results reveal no change across all financial reporting properties. Examining disclosure compliance for capitalized development costs and other provisions reveals substantial variation in compliance.

Keywords: German Accounting Law Modernization Act; German GAAP; Accounting standards; Financial reporting properties; Private firms (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s40685-017-0051-1 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:busres:v:10:y:2017:i:2:d:10.1007_s40685-017-0051-1

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/40685

DOI: 10.1007/s40685-017-0051-1

Access Statistics for this article

Business Research is currently edited by Thomas Gehrig

More articles in Business Research from Springer, German Academic Association for Business Research Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().