Impact of 2008 Financial Crisis On Earnings Quality :IFRS and US GAAP Differential Case of France and United States
FSEG (Tunisia), Jazan University, Jizan, Saudi Arabia
- *Corresponding Author:
- Slaheddine T
Jazan University, Jizan, Saudi Arabia
E-mail: [email protected]
Received Date: Februart 14, 2017; Accepted Date: April 20, 2017; Published Date: April 26, 2017
Citation: Slaheddine T (2017) Impact of 2008 Financial Crisis on Earnings Quality: IFRS and US GAAP Differential Case of France and United States. Int J Account Res 5: 155. doi:10.4172/2472-114X.1000155
Copyright: © 2017 Slaheddine T. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The purpose of this paper is to evaluate the impact of 2008 financial crisis in two countries adopting two different accounting and financial systems: France (IFRS) and United States (US GAAP). From two French and American samples of 4030 firm–year observations (from 2004 to 2013), we found significant discrepancies between the two countries and within the same country. For French companies, only the persistence was degraded during 2008 and this deterioration mitigated after the year of the crisis. However, the effect of the crisis on the earnings quality of US companies was paradoxical: negative effect on predictability, value relevance and timeliness and positive effect on conservatism and without effects on earnings management.