Hail, Procrustes! Harmonized Accounting Standards as a Procrustean Bed
Jack Douglas Stecher
Carnegie Mellon University - David A. Tepper School of Business
Tilburg University - Tilburg School of Economics and Management
July 14, 2012
Journal of Accounting and Public Policy, Vol. 31, No. 4, 2012
This article finds that the use of a harmonized accounting standard, such as the International Financial Reporting Standards, increases the information available to markets only if institutional differences across countries using the harmonized standard are insignificant. In all other cases, harmonization of reporting standards destroys information rather than increasing it. This article also contributes to methodology, introducing techniques for studying non-partitional information structures.
Keywords: IFRS, accounting harmonization, non-partitional information structures, convergence
JEL Classification: M41, G15, D83, C65Accepted Paper Series
Date posted: January 11, 2007 ; Last revised: July 25, 2012
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