Analysts' Forecast Accuracy in Germany: The Effect of Different Accounting Principles and Changes of Accounting Principles

This paper assesses the influence of an adoption of IAS/IFRS or US GAAP on the financial analysts forecast accuracy in a homogenous institutional framework. Our findings suggest that the forecast accuracy is higher for estimates based on IFRS or US GAAP data than for forecasts based on German GAAP data. Moreover, in the year of switching from German GAAP to US GAAP the forecast accuracy is lower than in other years. The paper contributes to prior research by providing evidence about the usefulness of international accounting data and about the adoption effects of a change to such accounting principles

The impact of carbon disclosure mandates on emissions and financial operating performance

We examine whether a disclosure mandate for greenhouse gas emissions creates stakeholder pressure for firms to subsequently reduce their emissions. For UKincorporated listed firms such a mandate was adopted in 2013. Using a difference- indifferences design, we find that firms affected by the mandate reduced their emissions – depending on the specification – by an incremental 14-18% relative to a control group. This reduction was accompanied by an average 9% increase in production costs. At the same time, the treated firms were able to increase their sales by an almost compensating amount. Taken together, our findings provide no indication that the disclosure requirement led to a significant deterioration in the financial operating performance of the treated firms, despite the significant carbon footprint reduction following the disclosure mandate

The impact of carbon disclosure mandates on emissions and financial operating performance

We examine the impact of a disclosure mandate for greenhouse gas emissions on firms' subsequent emission levels and financial operating performance. For UK-incorporated listed firms a carbon disclosure mandate was adopted in 2013. Our difference-indifferences design shows that firms affected by the mandate reduced their emissions by about 8% relative to a control group of European firms. At the same time, our tests indicate that the treated firms experienced no significant changes in their gross margins. Taken together, our findings indicate that the reporting mandate had a real effect on the variable to be disclosed without adversely affecting the financial operating performance of the treated firms

The impact of carbon disclosure mandates on emissions and financial operating performance

We examine whether a disclosure mandate for greenhouse gas emissions creates stakeholder pressure for firms to subsequently reduce their emissions. For UK-incorporated listed firms such a mandate was adopted in 2013. Using a difference-in-differences design, we find that firms affected by the mandate reduced their emissions – depending on the specification – by an incremental 14-18% relative to a control group. This reduction was accompanied by an average 9% increase in production costs. At the same time, the treated firms were able to increase their sales by an almost compensating amount. Taken together, our findings provide no indication that the disclosure requirement led to a significant deterioration in the financial operating performance of the treated firms, despite the significant carbon footprint reduction following the disclosure mandate

The Value Relevance of Accounting Data According to IFRS and US GAAP: The Case of Germany

This paper compares the value relevance of IFRS, US GAAP and national GAAP in a specific institutional setting. Using a sample of all listed firms in Germany which have voluntarily adopted IFRS or US GAAP we apply three different valuation models as well as a return model in our analysis. Whereas under IFRS and Germany GAAP book value of equity is relatively more value relevant than net income, we find a different result for US GAAP. Additionally, the results of our study suggest that IFRS accounting produces more value relevant data than HGB and US GAAP. However, the differences in the value relevance of the accounting systems are lower than expected.</jats:p

The value relevance of comprehensive income under IFRS and US GAAP: empirical evidence from Germany

The IASB and FASB are currently conducting a project on performance reporting which broadly addresses the definition and presentation of income in financial statements. This study examines and compares the current practice of performance reporting under IFRS and US GAAP within a homogenous institutional setting. Therefore, it uses a sample of companies which were listed in the major segments of the German stock exchange during the period 2001?2004 and which voluntarily applied IFRS or US GAAP. The major results of our study are that: comprehensive income appears to provide no incremental value relevant information beyond net income in explaining stock returns; comprehensive income under IFRS provides more incremental value relevant information than comprehensive income under US GAAP; concerning the components of other comprehensive income, only unrealised gains and losses from available-for-sale financial assets in the IFRS sample are clearly incremental value relevant