Information content, Cash flows, Working capital, Nonlinear P/E relation

Canadian firms that list securities on U.S. stock exchanges are generally required to provide a reconciliation of reported income measured using Canadian generally accepted accounting principles (GAAP) to reported earnings measured using U.S. GAAP. This paper examines both the magnitudes and the information content of the reported reconciliations between CanadianGAAP income and U.S.GAAP income. Two recent studies of cross-country GAAP differences do not address U.S.-Canada differences because of perceived similarities between GAAP in the two countries (Amir, Harris, and Venuti [1993] and McQueen [1993]). If U.S.-Canada GAAP differences are in fact unimportant, then no further examination is warranted. Professional bodies, however, are

Joseph V. Carcello, Zoe-Vonna Palmrose, Auditor Litigation and Modified Reporting on Bankrupt Clients, Journal of Accounting Research, Vol. 32, Studies on Accounting, Financial Disclosures, and the Law (1994), pp. 1-30

Terrence B. O'Keefe, Dan A. Simunic, Michael T. Stein, The Production of Audit Services: Evidence from a Major Public Accounting Firm, Journal of Accounting Research, Vol. 32, No. 2 (Autumn, 1994), pp. 241-261

Financial ratios, Valuation, Cross-country differences, Comparability

Auditing, Auditor litigation, Audit failures, Lawsuits

Analyst forecasts, Forecasting, Forecast horizons, Forecast consistency

Auditing, Workpaper Review Performance, Manager performance, Senior performance

Auditing, Auditor litigation, Rule 10b-5, Auditor liability

Auditing, Source reliability, Auditor judgment