We then examine variation in accounting quality, before
and after implementation of each standard. We focus
on an accounting quality attribute based on the extent to
which accounting earnings reflects earnings management.
Specifically, we determine the effect of each of the
accounting standards on earnings volatility and smoothing,
after controlling for known determinants of the accounting
attributes.3 The results are then combined to provide overall
evidence concerning standard-setting outcomes. We find a
general decline in our earnings management measures, consistent
with the trend to a balance sheet focus in accounting
standards. These results are also consistent with less earnings
management (and higher accounting quality