TY  - BOOK
AU  - Lopes,Ana I.
AU  - Lourenço,Isabel
AU  - Soliman,Mark
TI  - Do alternative methods of reporting non-controlling interests really matter?
SN  - 03128962
AV  - HD31 AUS 
PY  - 2013///
CY  - Los Angeles
PB  - Sage
KW  - Reporting
KW  - IFRS
KW  - Implementation
KW  - Germany
N2  - Researchers have long been interested in whether the classification of various items on the balance sheet matters to investors. This paper provides evidence on whether reporting non-controlling interests (NCI) as equity or as non-equity matters in terms of value relevance. We use a sample of German firms that voluntary adopted International Financial Reporting Standards early. This adoption required them to change their reporting of NCI from the non-equity to the equity portion of the balance sheet. After conducting sensitivity tests for self-selection bias and controlling for weight of NCI, firm size and leverage, our results suggest that NCI are priced by the market in the same manner irrespectively of being reported as equity or non-equity. This finding reinforces the notion that equity markets are efficient in their processing of information, regardless of the classification by standard setters
UR  - https://doi.org/10.1177/0312896212458788
ER  -