A Review of Markets‐Based International Accounting Research

ABSTRACT: This paper discusses challenges and opportunities facing international accounting researchers and demonstrates the relevance of markets‐based international accounting research to those new to the area. We review recent research in the following areas: required GAAP for foreign‐listed firms and adoption of international standards, accounting classifications, earnings management, the impact of foreign operations on firm valuation, capital market anomalies, and accounting reforms. We also provide suggestions for future research in each area and examples of domestic research issues that can be addressed with international data. The opportunities for conducting international accounting research are many and growing.