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...