The article examines the differences, in terms of information quality (conditional conservatism), of the accounting reports of Brazilian public companies issuing and not issuing ADR. It is also examined the demonstrations published in the two accounting systems (BRGAAP and USGAAP). The hypotheses consider that there are no differences in the degrees of conditional conservatism among the firms due to: contractual and institutional similarities, the inexistence of incentives to modify managers' behavior by the process of cross-listing, and the lack of motivation by application of different accounting principles. The models of Transitory Earnings Components (BASU, 1997) and Association between Accruals and Cash Flows (BALL; SHIVAKUMAR, 2005) were used for the tests. To estimate the association coefficients for the two models, it was used panel data analysis. The results confirmed the hypotheses.
Conditional conservatism; ADR's issuing; Accounting systems; Losses asymmetric anticipation; Public companies
