This paper discusses challenges and opportunities in conducting markets-based
international accounting research. The paper also demonstrates the relevance of markets-based
international accounting research for those new to the area and provides suggestions for future
research. We define “markets-based international accounting research” as research that provides
implications for the decision usefulness or effect of publicly available accounting information to
equity investors in an international context.1 An international context includes direct
comparisons across countries, findings in one country having implications for another country,
the evaluation of foreign companies by domestic investors, and the operations and financing of
multinational companies (Wallace and Meek 2002). While we consider a broad range of topics,
we choose to focus solely on markets-based international accounting research. Additional areas
not discussed in this paper may provide excellent opportunities for future research. Therefore,
readers should keep in mind that exclusion of a topic does not necessarily indicate the lack of
relevance or future research potential.