Abstract

This paper examines the impact of mandatory adoption of international accounting standards on the income smoothing and earning management. Using a simple of French firms indexed in the CAC all tradable for a period of ten years (2000–2009), we find convincing evidence that the implantation of IFRS contributed to less income smoothing and earning management compared to the local accounting standards, even during the recent economic crisis. Less earning manipulation assures higher levels of reliability information.

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