One-Book Versus Two-Book System: Learnings from Europe

50 Pages Posted: 9 Feb 2012 Last revised: 2 Mar 2012

See all articles by Christoph Watrin

Christoph Watrin

University of Muenster - Accounting Center

Nadine Ebert

University of Muenster

Martin Thomsen

University of Muenster

Date Written: January 1, 2012

Abstract

Despite ongoing debates about the effect of book-tax conformity on earnings management in consolidated statements, there is a paucity of evidence from Europe, where both one- and two-book systems occur. In this study, we examine the influence of one- and two-book systems on earnings management using the consolidated statements of 18,578 European firm-years from 2004 to 2009. We find that firms in a one-book system show significantly more earnings management in consolidated statements compared with those in a two-book system.

Keywords: One-Book System, Two-Book System, Book-Tax Conformity, Earnings Management

Suggested Citation

Watrin, Christoph and Ebert, Nadine and Thomsen, Martin, One-Book Versus Two-Book System: Learnings from Europe (January 1, 2012). 2012 American Taxation Association Midyear Meeting: JATA Conference , Available at SSRN: https://ssrn.com/abstract=2001714 or http://dx.doi.org/10.2139/ssrn.2001714

Christoph Watrin (Contact Author)

University of Muenster - Accounting Center ( email )

Universitätsstr. 14-16
Muenster, 48143
Germany

Nadine Ebert

University of Muenster ( email )

Schlossplatz 2
Muenster, D-48149
Germany

Martin Thomsen

University of Muenster ( email )

Schlossplatz 2
Muenster, D-48149
Germany

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