Purpose: The purpose of this paper is to introduce analyst estimates and option pricing-based variables in modeling material accounting misstatements. Design/methodology/approach: The paper uses a logistic regression model to analyze a comprehensive sample of AAER and non-AAER firms listed in...

Purpose – The purpose of this paper is to examine whether mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union reduced earnings manipulation, as proxied by the difference between a firm's reported earnings and ex post estimate of earnings by financial...

Purpose – The purpose of this paper is to report on research concerning financial analysts’ activity surrounding profit warnings issued by listed companies in the four largest European stock exchanges (France, Germany, the Netherlands and the UK). The authors address three aspects of...

When the source of external capital for Continental European firms is examined, debt markets have historically supplied a much larger percentage of the external capital than equity markets, and firms rely much more on bank debt than bonds for their external funds. In this environment banks have...