2007 Fiscal Year Final Research Report Summary
Empirical Study about Equivalence of IFRS, Japanese GAAP, and U.S. GAAP
| Project/Area Number |
18530344
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | University of Toyama |
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Principal Investigator |
HAYASHI Kenji University of Toyama, Faculty of Economics, Professor (60231528)
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| Project Period (FY) |
2006 – 2007
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| Keywords | US GAAP / IFRS / Reconciliation / Euivalence / Convergence / ADR / Vuong Test |
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| Research Abstract |
Equivalent nature evaluation of IFRS, Japan GAAP, and U.S. GAAP was tried based on the annual report of the U.S. GAAP reconciler. The precedence research on whether reconciliation to U.S. GAAP is useful for an investor was classified and reviewed in three types. Three correction models which contain frame of U.S. GAAP earnings adjustment differences variable; RCNC [(GAAP earnings adjustment differences/foreign GAAP earnings or IFRS earnings)] which divided the absolute value by the final stock price in the earnings capitalization model, book value model, and residual income valuation models which were used by precedence research were added.
Vuong test compared the stock price explanation power of earnings capitalization model of 23 U.S. GAAP reporters (14 Japanese companies are included) and 63 U.S. GAAP reconcilers (5 IFRS application companies, 58 its native country GAAP application companies), the book value model, and residual income model. Although the ranking and of dominance of book value model and earnings capitalization model differed from precedence research, the stock price explanation power of the residual income model was most excellent. The explanation power of the U.S. GAAP repoters endured it of the U.S. GAAP reconcilers. According to Vuong test, the contents of an increment information of the U.S. GAAP earnings adjustment difference variable were not checked, but the significant relation was found out between the U.S. GAAP earnings adjustment difference variable and the stock price(5% level). The result of research about these was announced in Accounting, Vol.172, No.2 (August, 2007).
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Research Products
(8 results)
