International Evidence on the Matching Between Revenues and Expenses

He, W; Shan, Y

International Evidence on the Matching Between Revenues and Expenses

He, W Shan, Y

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Publication Type:: Journal Article
Citation:: Contemporary Accounting Research, 2016, 33 (3), pp. 1267 - 1297
Issue Date:: 2016-01-01

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Field	Value	Language
dc.contributor.author	He, W	en_US
dc.contributor.author	Shan, Y https://orcid.org/0000-0003-2156-8722	en_US
dc.date.issued	2016-01-01	en_US
dc.identifier.citation	Contemporary Accounting Research, 2016, 33 (3), pp. 1267 - 1297	en_US
dc.identifier.issn	0823-9150	en_US
dc.identifier.uri	http://hdl.handle.net/10453/121950
dc.description.abstract	© CAAA This study investigates the time-series trend and determinants of matching between revenues and expenses in a sample of 42 countries. We find that the decline in matching documented by Dichev and Tang () is not unique to the United States, but is a worldwide phenomenon. Our results show that matching is weaker in countries with (i) wider use of accrual accounting; (ii) a larger proportion of firms reporting significant special items; (iii) slower economic growth; (iv) more research and development activities; (v) larger service sectors; and (vi) stronger investor protection. We find no evidence that mandatory adoption of International Financial Reporting Standards affects matching. Changes in accounting and economic factors collectively explain the downward trend in matching. Overall, the results suggest that both accounting and economic factors are important determinants of matching over time and across countries.	en_US
dc.relation.ispartof	Contemporary Accounting Research	en_US
dc.relation.isbasedon	10.1111/1911-3846.12183	en_US
dc.subject.classification	Accounting	en_US
dc.title	International Evidence on the Matching Between Revenues and Expenses	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	33	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	33	en_US

Abstract:

© CAAA This study investigates the time-series trend and determinants of matching between revenues and expenses in a sample of 42 countries. We find that the decline in matching documented by Dichev and Tang () is not unique to the United States, but is a worldwide phenomenon. Our results show that matching is weaker in countries with (i) wider use of accrual accounting; (ii) a larger proportion of firms reporting significant special items; (iii) slower economic growth; (iv) more research and development activities; (v) larger service sectors; and (vi) stronger investor protection. We find no evidence that mandatory adoption of International Financial Reporting Standards affects matching. Changes in accounting and economic factors collectively explain the downward trend in matching. Overall, the results suggest that both accounting and economic factors are important determinants of matching over time and across countries.

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http://hdl.handle.net/10453/121950