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This paper aims to investigate the impact that governance mechanisms have on European Union ‘banks income smoothing behavior.

The authors examine the impact that corporate governance mechanisms included in European Commissions’ proposals regarding the improvement of corporate governance mechanisms (Green Paper) have upon European Union banks’ accounting policy decisions regarding the level of loan loss provisions (LLPs). In addition, the authors examine whether banks’ capital structure operates as an effective internal corporate governance practice. The authors investigate the association between certain corporate governance characteristics and the level of LLPs for a sample of 98 banks from 23 European Union countries for the period of 2010-2013, in the aftermath of the 2008 financial crisis. To test the hypotheses, a multivariate regression model is run. Similar to previous research, the authors use ordinary least squares analysis to test the results.

Empirical findings provide evidence that there is a positive association between LLPs and accounting income, implying the existence of an income-smoothing pattern of provisions. In addition, the results suggest that banks managers’ decision to smooth income may differ with regard to the board structure, the level of leverage and the provision of disclosure for remuneration for chief executive officer.

The findings of this study contribute to the existing literature concerning banks’ income smoothing behavior. These findings can be useful to regulators, as the authors provide some evidence regarding the effectiveness of the European Union corporate governance framework.

The purpose of this paper is to investigate the market reaction to the accounting treatment of the marking‐to‐market of equity investments of Greek firms during the period 2002‐2004.

Using data for firms listed in the ASE, a treatment effects model of returns on control variables, the valuation adjustment and a dummy for the accounting treatment which is modeled as conditional to profitability, size and leverage.

It is found that firms chose to take valuation losses through equity but the market considered this treatment as a negative signal. The paper concludes that although market behavior is consistent with the efficient markets hypothesis, managerial behavior is more consistent with the mechanistic hypothesis.

This study contributes to understanding the factors that influence the accounting policy decisions of firms listed in the Athens Stock Exchange. In addition, this study contributes to evaluating the IASB's decision to give issuers of reclassify financial the ability to reclassify them.

This paper aims to examine the relevance of International Financial Reporting Standards (IFRS) in emerging markets, with special reference to the case of Greece.

This paper adopts a mixed methodology relying primarily on secondary sources such as the relevant legislation, published annual reports and reports on the effects of the application of IFRS by Greek firms as well as the results of a postal survey addressed to the finance managers of the top 100 Greek firms. For the postal survey, a modified version of the questionnaire used by Tyrall et al. was adopted.

Although the Greek environment was not appropriate for IFRS application, participants in the survey believe that their adoption improved the quality of financial reporting. The introduction of IFRS increased the reliability, transparency and comparability of the financial statements.

This study provides insights regarding the extent to which the introduction of IFRS influenced the accounting information supplied by firms operating within the European Union.

The paper empirically investigates the impact of the introduction of IFRS on the quality of financial statements within the context of emerging markets.

This paper aims to investigate the factors that influence the accounting policy decisions of firms operating in Greece. Emphasis is given to management's perceptions regarding the impact that accounting figures have upon the decision‐making and opinions of firms' stakeholders.

Through a survey the financial managers of the 200 largest firms in Greece have been asked to indicate their opinions regarding the impact that reported figures have upon firms' stakeholders and the extent to which firms pursue specific profit‐related objectives.

According to the participants in the survey accounting figures influence firms' stakeholders' perceptions and decision‐making, and firms pursue profit‐related objectives that may not coincide with the objective of minimization of firms' tax liability.

Although certain measures have been taken in order to limit the response bias, one cannot rule out the possibility that some bias have been introduced in the responses. A further empirical investigation based upon annual reports will provide additional evidence regarding the factors that influence firms' reporting policies.

This study helps researchers in identifying the factors that shape accounting policies of firms operating in countries with an environment similar to that of Greece. Additionally, the findings of this study can facilitate professionals who undertake international financial analysis.

The findings of this study can contribute to explaining Greek firms' accounting decisions. Given that the accounting environment in Greece is similar to that prevailing in many European and non‐European countries this study can provide an insight regarding the factors that influence financial reporting choices of firms operating in these countries.

The purpose of this paper is to examine the effect of the mandatory adoption of corporate governance mechanisms on serious firm issues (earnings manipulation, management effectiveness and firm's financing).

Cross‐sectional analysis is employed to investigate the association between the corporate governance mechanisms that have been introduced by the L.3016/2002 and earnings manipulation, management effectiveness and firm's financing.

This study finds that the mandatory corporate governance mechanisms decrease firms' weighted average cost of capital, increase firm's financing and have no impact on firms' effectiveness and earnings manipulation.

This study provides insights regarding the extent to which the mechanisms of corporate governance provided by the L.3016/2002, improve the quality of financial statements prepared by Greek companies. The conclusions of the study are useful for the providers of equity and debt capital, the legislators and the shareholders.

The paper tests, empirically, the effect of the mandatory corporate governance mechanisms on earnings manipulation, management effectiveness and firm's financing.