The empirical evaluation of financial reporting quality in the context of accelerating convergence between Japanese GAAP and International Financial Reporting Standards (IFRS)

点击翻译按钮获取中文摘要

The convergence between Japanese GAAP and International Financial Reporting Standards (IFRS) has progressed rapidly in recent years. On the other hand, changing earnings attributes make investors difficult to predict future earnings, which is the necessary process for evaluating firm value. We empirically examine how various accounting information such as inventory level, capital investments, cash flow information, financing activities, extraordinary losses, book-tax differences, going concern opinion, order backlog, and dividend policy help investors to predict future performance. We then obtain many valuable results, which improve investors' decision-making, and contribute to the sound development of Japanese security markets.