Ms. Harris et Ka. Muller, The market valuation of IAS versus US-GAAP accounting measures using Form 20-F reconciliations, J ACCOUNT E, 26(1-3), 1999, pp. 285-312
We investigate the market valuation of earnings and book value amounts prep
ared under IAS and US-GAAP to provide evidence for the debate between the U
S SEC and NYSE on whether foreign firms should be allowed to list in the US
using IAS. We find that the US-GAAP earnings reconciliation adjustment is
value-relevant and that US-GAAP amounts are valued differently for market v
alue and return models, but not a price-per-share model. We also find that
IAS amounts are more highly associated with price-per-share than US-GAAP am
ounts, and that US-GAAP amounts are more highly associated with security re
turns than IAS amounts. (C) 1999 Elsevier Science B.V. All rights reserved.
JEL classification: M41; G15.