Relevance of U.S.-Gaap for Japanese Companies

16 Pages Posted: 22 Aug 2004

See all articles by Joseph H. Godwin

Joseph H. Godwin

Grand Valley State University - Department of Accounting & Taxation

Stephen R. Goldberg

Grand Valley State University

Edward B. Douthett

George Mason University - School of Business

Abstract

We use differences in U.S. GAAP and Japanese-GAAP accounting measures to evaluate the value-relevance of U.S.-GAAP reports. We show data provided in U.S. GAAP financial statements of Japanese firms is value-relevant beyond that contained in domestic-GAAP statements. Our results complement extant research and support the proposition that U.S. reporting methods provide value-relevant data. Understanding the value-relevance of data from Japanese firms is important in its own right because of the major role these firms play in international markets. We also provide evidence on significant transnational firms that voluntarily provide U.S. GAAP statements.

Keywords: Book value equity, earnings, foreign registrants, U.S.-GAAP, value-relevance

JEL Classification: F23, G15, M40, M41

Suggested Citation

Godwin, Joseph H. and Goldberg, Stephen R. and Douthett, Edward B., Relevance of U.S.-Gaap for Japanese Companies. Available at SSRN: https://ssrn.com/abstract=467961

Joseph H. Godwin

Grand Valley State University - Department of Accounting & Taxation ( email )

Seidman School of Business
1 Campus Drive
Allendale, MI 49401
United States

Stephen R. Goldberg

Grand Valley State University ( email )

1 Campus Dr.
Allendale, MI 49401-9403
United States

Edward B. Douthett (Contact Author)

George Mason University - School of Business ( email )

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