| Panel A: Test 1—Earnings Volatility | Pair-wise F-tests for equality of variance | |||||||
|
| 2006 - US GAAP | 2007 - IFRS | 2008 - IFRS | 2006 vs 2007 | 2007 vs 2008 | |||
| Test Variables | Mean | Standard Deviation | Mean | Standard Deviation | Mean | Standard Deviation | ||
| Δ(NP/TA) | 0.0988 | 1.2036 | −0.0677 | 2.3198 | 0.7559 | 14.2594 | * | ** |
| Δ(NP/OCF) | 1.2398 | 5.2268 | 0.2605 | 8.2668 | 0.7054 | 13.4514 | * | * |
| Sample size | 186 |
| 188 |
| 200 |
|
|
|
| Panel B: Accruals and Quality | ||||||||
| Test 2a:Accruals-OCF | ||||||||
|
| 2006 | Sig | 2007 | Sig | 2008 | Sig |
|
|
| Pearson Correlation of ACCR-OCF | −0.504 | *** | 0.125 | * | −0.278 | *** |
|
|
| Sample size | 197 |
| 197 |
| 203 |
|
|
|
| Test 2b: Earnings Quality | ||||||||
|
| 2006 - US GAAP | 2007 - IFRS | 2008 - IFRS |
|
| |||
| Test Variables | Coefficients | Sig. | Coefficients | Sig. | Coefficients | Sig. |
|
|
| R2 adj. | 0.181 |
| 0.288 |
| 0.156 |
|
|
|
| F test | 44.198 | *** | 80.109 | *** | 38.262 | *** |
|
|
| OCF | −0.285 | *** | 2.314 | *** | 4.343 | *** |
|
|
|
| (0.403) |
| (0.259) |
| (0.702) |
|
|
|
| Sample size | 197 |
| 197 |
| 203 |
|
|
|
| Panel C: Test 2c—OLS Regression of Accruals on Firm Financial Measures | ||||||||
| 2006 - US GAAP | 2007 - IFRS | 2008 - IFRS | ||||||
| Variables | Coefficients | Sig. | Variables | Coefficients | Sig. | Variables | Coefficients | Sig. |
| SALETAS | −0.007 | ** | NAVSH | −0.001 | * | SALESHA | −0.001 | ** |
|
| (0.004) |
|
| (0.000) |
|
| (0.000) |
|
| RESTAS | −0.003 | * | SALETAS | −0.01 | *** | SALETAS | −0.021 | *** |
|
| (0.002) |
|
| (0.003) |
|
| (0.003) |
|
| LNMV | 0.001 | * | RESTAS | −0.006 | *** | PLOWB | 0.001 | ** |
|
| (0.000) |
|
| (0.001) |
|
| (0.000) |
|
| OPM | 0.19 | *** | RESSFU | −0.002 | ** | OPM | 0.362 | *** |
|
| (0.018) |
|
| (0.001) |
|
| (0.021) |
|
| NPM | 0.425 | *** | OPM | 0.118 | *** | NPM | 0.095 | *** |
|
| (0.028) |
|
| (0.021) |
|
| (0.020) |
|
| ROCE | 0.006 | * | NPM | 0.215 | *** | ROSC | 0.004 | *** |
|
| (0.003) |
|
| (0.028) |
|
| (0.001) |
|
| CGEAR | 0.001 | *** | ROSC | 0.006 | ** | ROCE | 0.009 | *** |
|
| (0.000) |
|
| (0.003) |
|
| (0.003) |
|
| INTCOV | 0.001 | ** | EPS | 0.018 | *** | DEBT | −0.001 | ** |
|
| (0.000) |
|
| (0.002) |
|
| (0.000) |
|
| Constant | −0.005 |
| DEBT | −0.002 | *** | Constant | 0.007 | * |
|
| (0.005) |
|
| (0.000) |
|
| (0.004) |
|
|
|
|
| CLSFU | −0.003 | *** |
|
|
|
|
|
|
|
| (0.001) |
|
|
|
|
|
|
|
| IGEAR | −0.007 | * |
|
|
|
|
|
|
|
| (0.003) |
|
|
|
|
|
|
|
| Constant | 0.024 | *** |
|
|
|
|
|
|
|
| (0.004) |
|
|
|
|
| R2 adj. | 0.787 |
| R2 adj. | 0.756 |
| R2 adj. | 0.803 |
|
| Sample size | 170 |
| Sample size | 175 |
| Sample size | 184 |
|
| Panel D: Test 3 | ||||||||
| a) Logistic Regression (SPP) | ||||||||
| 2006-2007 | 2006-2008 |
|
|
| ||||
| Cases Included in Analysis | 393 | Cases Included in Analysis | 394 |
|
|
| ||
| Accuracy Rate | 51.40% | Accuracy Rate | 51.50% |
|
|
| ||
| Variable | Coefficients | Sig. | Variable | Coefficients | Sig. |
|
|
|
| SPP | −2.130 | ** | SPP | −1.146 | ** |
|
|
|
|
| (0.870) |
|
| (0.565) |
|
|
|
|
| b) Logistic Regression (LNL) | ||||||||
| 2006-2007 | 2006-2008 |
|
|
| ||||
| Cases Included in Analysis | 393 | Cases Included in Analysis | 394 |
|
|
| ||
| Accuracy Rate | 51.40% | Accuracy Rate | 51.50% |
|
|
| ||
| Variable | Coefficients | Sig. | Variable | Coefficients | Sig. |
|
|
|
| LNL | 1.722 | *** | LNL | 1.614 | ** |
|
|
|
|
| (0.631) |
|
| (0.623) |
|
|
|
|