Hypothesis

Result

Findings

H1

Holds

Findings indicate a decrease of variation between IFRS and US GAAP after SEC’s decision to allow IFRS in the US for foreign firms

H2

Holds

IFRS performed more volatile ratios in relation to size (NAVSH), growth (PEG, DIVSHG) and leverage (CLSFU, IGEAR)

H3

Holds

There is a strong indicator that under IFRS, firms tended to preform less earnings management techniques