International harmony measures of accounting policy: comparative statistical properties

Morris, Richard D.; Parker, R. H.

doi:10.1080/00014788.1998.9729567

Cited by 28 publications

(33 citation statements)

References 8 publications

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“…Where a particular accounting policy is not applicable, the choices it entails are irrelevant. This means that accounts of companies for which the policy is not applicable may be validly compared (for reported results and financial position) with accounts of companies for which the policy is relevant (Archer et al 1995;Morris and Parker, 1998).' For not-applicable cases Archer et al (1995) proposed a 'disclosure adjusted' C index that recognises this 'universal comparability of not-applicable observations' (UCNA).…”

Section: Introductionmentioning

confidence: 99%

“…Non-disclosure poses a problem for harmonisation measurement (Archer et al, 1995;Morris and Parker, 1998). Archer et al, (1995) distinguished two kinds of non-disclosures -those not applicable to the firm and those that are applicable but are not disclosed.…”

Section: Introductionmentioning

confidence: 99%

“…This paper builds on the work of Archer et al (1995) and Morris and Parker (1998) by applying a generalised formula for the BCC index, in which the non-disclosure is a mix of applicable and notapplicable cases. It uses real data where non-disclosures are partitioned into recognition and measurement categories in order to narrow down the 'applicable' and 'not-applicable' non-disclosures.…”

Section: Introductionmentioning

confidence: 99%

“…The BCC and I indices are competing measures of international harmony with the BCC possibly the superior index because of its greater stability as the number of countries involved increases (Morris and Parker, 1998).…”

Section: Introductionmentioning

confidence: 99%

“…Archer et al (1995) developed a method of calculating the combinations-based between-country C (BCC) index that takes account of non-disclosure of applicable cases. Their ideas were taken up by Morris and Parker (1998), specifying BCC and van der Tas I indices for each type of non-disclosure. ' Morris and Parker explored the comparative statistical properties of the measures of international harmony by modelling the effect of non-disclosure as the number of countries under comparison is increased on a cross-sectional basis.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Measurement ofde factoharmonisation: implications of non-disclosure for research planning and interpretation

Pierce

Weetman

2002

Accounting and Business Research

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Index-based harmonisation measurement techniques using company accounts data have been developed in prior research. Although the results of applying such measures have been reported in the literature as indicating actual levels of financial reporting harmony, such conclusions have not always been justified. In the first instance, it can be argued that the limitations of the indices as measures of financial reporting harmony in situations of non-disclosure were not always appreciated or highlighted. Secondly, data used for the purpose of measuring harmony was not always sufficiently robust to support the conclusions drawn. In this study, a generalised formula is presented, combining different categories of non-disclosure. It is reconciled to special cases derived in previous research and is then applied to company accounts data, which is sufficiently refined in detail to form a basis for answering illustrative exploratory research questions relating to the level of harmony and harmonisation trends. The specific analysis relates to deferred tax accounting in Ireland and Denmark over a period of eight years. Statistical analysis reinforces a discussion that warns researchers of the potential variations in results. Conclusions are drawn that the state of harmony is better estimated when the data is analysed to distinguish applicable from not-applicable cases of non-disclosure, and the index formulae applied are adjusted appropriately in both the numerator and the denominator. However, caution remains necessary where the non-disclosure level is relatively high.

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Section: Introductionmentioning

confidence: 99%