The Development of Voluntary Cash Flow Statements in Germany and the Influence of International Reporting Standards
This paper studies the incentives of German firms to voluntarily disclose cash flow statements. Although cash flow statements have not been mandatory in Germany until recently, an increasing number of firms have voluntarily provided cash flow statements. These firms are likely to be influenced by recommendations of the German accounting profession, IAS 7, and the respective standards of other countries. This paper studies this influence by looking at the adoption pattern of the cash flow statement over time, and its format. It uses milestones in the evolution of German professional recommendations and respective international standards to chart the development of voluntary cash flow statements. The paper analyzes the cross-sectional determinants of voluntary (international) cash flow statements using probit regressions and factor analysis. The results support the idea that capital-market forces drive the disclosure of cash flow statements that conform with international reporting practice.
(This abstract was borrowed from another version of this item.)
|Date of creation:||Jul 1999|
|Date of revision:|
|Contact details of provider:|| Postal: Senckenberganlage 31, 60054 Frankfurt|
Web page: http://www.finance.uni-frankfurt.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fra:franaf:40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reinhard H. Schmidt)
If references are entirely missing, you can add them using this form.