Hail, Procrustes! Harmonized Accounting Standards as a Procrustean Bed

Posted: 11 Jan 2007 Last revised: 25 Jul 2012

See all articles by Jack Douglas Stecher

Jack Douglas Stecher

University of Alberta - Department of Accounting, Operations & Information Systems

Jeroen Suijs

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: July 14, 2012

Abstract

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, C65

Suggested Citation

Stecher, Jack Douglas and Suijs, Jeroen, Hail, Procrustes! Harmonized Accounting Standards as a Procrustean Bed (July 14, 2012). Journal of Accounting and Public Policy, Vol. 31, No. 4, 2012, Available at SSRN: https://ssrn.com/abstract=956102

Jack Douglas Stecher (Contact Author)

University of Alberta - Department of Accounting, Operations & Information Systems ( email )

Edmonton, Alberta T6G 2R6
Canada

Jeroen Suijs

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

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