臺大管理論叢 NTU Management Review VOL.30 NO.2

The Effects of Relaxing the Reconciliation Requirement in Foreign Private Issuers’ SEC Filings on Earnings Management Strategies: IFRS Adopters versus U.S. GAAPAdopters 92 the sample countries. 16 Panel B of Table 1 further reports the number of companies that changed their filing choice to either U.S. GAAP or IFRS by fiscal years during our sample period. 17 Panel C of Table 1 provides an industry breakdown. Communications has the largest number of sample firms (11), while five industries, including heavy construction; printing and publishing; leather products; stone, clay, and glass; and food stores, have the smallest (one). The sample distribution reveals a somewhat uneven distribution across the various industries. Table 1 Sample Distribution Panel A. Country-level sample distribution Country Firm-years Unique firms U.S. GAAP adopters IFRS adopters Argentina 2 1 1 Australia 5 3 3 Bermuda a 25 11 6 5 Brazil b 11 7 7 British Virgin Islands 4 2 2 Canada 42 19 14 5 Channel Islands 2 1 1 China 3 1 1 India 23 6 6 Indonesia 5 2 2 Ireland 4 1 1 Israel 17 6 5 1 Korea 2 1 1 Marshall Islands 3 1 1 Mexico 9 7 7 United Kingdom 4 2 2 Total 161 71 31 40 16 Similar to Kim et al. (2012), we use the country of incorporation, rather than the country of headquarter, in defining the countries of our sample firms. For instance, Transatlantic Petroleum Corporation is incorporated in Bermuda, but is headquartered in Turkey. This explains the large proportion of Bermuda firms in our sample. 17 The number of observations is somewhat unequal between Panel A and B because: (1) one Bermuda firm converted to U.S. GAAP in 2007 from Canadian GAAP; (2) two and one Brazilian firms switched from U.S. GAAP to IFRS in 2009 and 2010, respectively.