Ashbaugh and Pincus (2001) investigate whether the differences in accounting standards
relative to IAS have an impact on the ability of financial analysts to forecast non-U.S. firms’earnings accurately, and (2) whether analyst forecast accuracy changes after firms adopt IAS. They find a positive relation between GAAP differences relative to IAS and analyst earnings forecast errors. They interpret this finding as evidence that the differences in accounting standards across countries affect users of financial statements.