One-Book Versus Two-Book System: Learnings from Europe

52 Pages Posted: 18 Jul 2012 Last revised: 19 Jul 2012

See all articles by Christoph Watrin

Christoph Watrin

University of Muenster - Accounting Center

Nadine Ebert

University of Muenster

Martin Thomsen

University of Muenster

Date Written: July 17, 2012

Abstract

Despite ongoing debates about the effect of book-tax conformity on earnings management in consolidated statements, there is a paucity of evidence from Europe, where both one- and two-book systems occur. In this study, we examine the influence of one- and two-book systems on earnings management using the consolidated statements of 11,694 European firm-years from 2004 to 2009. We find that firms in a one-book system show significantly more (downward) earnings management in consolidated statements compared with those in a two-book system.

Keywords: One-Book System, Two-Book System, Book-Tax Conformity, Earnings Management

Suggested Citation

Watrin, Christoph and Ebert, Nadine and Thomsen, Martin, One-Book Versus Two-Book System: Learnings from Europe (July 17, 2012). Available at SSRN: https://ssrn.com/abstract=2111517 or http://dx.doi.org/10.2139/ssrn.2111517

Christoph Watrin

University of Muenster - Accounting Center ( email )

Universitätsstr. 14-16
Muenster, 48143
Germany

Nadine Ebert (Contact Author)

University of Muenster ( email )

Schlossplatz 2
Muenster, D-48149
Germany

Martin Thomsen

University of Muenster ( email )

Schlossplatz 2
Muenster, D-48149
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
255
Abstract Views
2,518
rank
150,070
PlumX Metrics