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Empirical evidence on cross-country differences in explaining accruals anomaly

Author

Listed:
  • Diana MURESAN

    (Faculty of Economics and Business Administration,Babes-Bolyai University)

  • Monica Ioana POP SILAGHI

    (Faculty of Economics and Business Administration,Babes-Bolyai University)

Abstract

This paper examines whether accruals anomaly is related to cross-country factors of the developed stock markets. The paper finds that the extensive use of an accrual accounting system or accounting standards with a spread ownership concentration may impact negatively the accruals anomaly in various countries.The cross-sectional regression reveals that the legal system has no influence in the occurrence of accruals anomaly.Moreover, accruals anomaly is positively affected by the regulations norms.Overall, our results suggest that cross-country differences in the accounting and institutional systems allow for accruals anomaly with prevalence in some countries.

Suggested Citation

  • Diana MURESAN & Monica Ioana POP SILAGHI, 2014. "Empirical evidence on cross-country differences in explaining accruals anomaly," Romanian Journal of Economics, Institute of National Economy, vol. 39(2(48)), pages 121-132, December.
    • Handle: RePEc:ine:journl:v:39:y:2014:i:48:p:121-132
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    References listed on IDEAS

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    Cited by:

    1. Cordeiro Moreira, Jeíce Catrine & Lima, Gerlando A.S.F. & Góis, Alan Diógenes, 2019. "Effects of institutional factors on the accruals anomaly in Latin America," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 36(C), pages 1-1.

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    More about this item

    Keywords

    accruals anomaly; accounting systems; institutional factors; developed countries;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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