International evidence on the matching between revenues and expenses

He, Wen and Shan, Yaowen (2016) International evidence on the matching between revenues and expenses. Contemporary Accounting Research, 33 3: 1267-1297. doi:10.1111/1911-3846.12183

Author He, Wen
Shan, Yaowen
Title International evidence on the matching between revenues and expenses
Journal name Contemporary Accounting Research   Check publisher's open access policy
ISSN 0823-9150
Publication date 2016-09-01
Sub-type Article (original research)
DOI 10.1111/1911-3846.12183
Open Access Status Not yet assessed
Volume 33
Issue 3
Start page 1267
End page 1297
Total pages 31
Place of publication Toronto, ON Canada
Publisher Canadian Academic Accounting Association
Collection year 2017
Language eng
Abstract 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 (2008) 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.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
UQ Business School Publications
Version Filter Type
Citation counts: Scopus Citation Count Cited 0 times in Scopus Article
Google Scholar Search Google Scholar
Created: Mon, 13 Mar 2017, 12:50:13 EST by Karen Morgan on behalf of UQ Business School