Accounting Standards and External Corporate Governance. The effect of mandatory IFRS adoption on Analyst Coverage.

This study aims to examine the consequences of International Financial Reporting Standards (IFRS) convergence in an emerging market. More specifically, we investigate whether the adoption of the new set of accounting standards in Malaysia is associated with lower earnings management. Using a sample of 3,340 firm-year observations across three reporting periods with different levels of IFRS adoption, we provide evidence that IFRS convergence improves earning quality. In particular, we find a significant decrease in the absolute value of discretionary acccruals in the partial IFRS-convergence period (2007-2011), whereas this effect is restrictive after the complete IFRS- implementation.

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Mandatory IFRS adoption and managers' compensation: the moderating effect of corporate governance

International Journal of Auditing Technology ◽

10.1504/ijaudit.2017.091329 ◽

2017 ◽

Vol 3 (4) ◽

pp. 249

Author(s):

Senda Wali ◽

Olfa Kamel

Keyword(s):

Corporate Governance ◽

Moderating Effect ◽

Ifrs Adoption

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A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rcgv6i4art13 ◽

2016 ◽

Vol 6 (4) ◽

pp. 102-114 ◽

Cited By ~ 4

Author(s):

Newman Wadesango ◽

Edmore Tasa ◽

Khazamula Milondzo ◽

Ongayi Vongai Wadesango

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Reporting Quality ◽

Financial Statements ◽

Conclusive Evidence ◽

Financial Reporting Quality ◽

International Accounting Standards ◽

Ifrs Adoption ◽

The Impact

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

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What accounting standards were the cause of enforcement actions following IFRS adoption?

Accounting and Finance ◽

10.1111/acfi.12661 ◽

2020 ◽

Cited By ~ 1

Author(s):

Michael E. Bradbury ◽

Tom Scott

Keyword(s):

Accounting Standards ◽

Ifrs Adoption

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Does a Firm’s Corporate Governance Enhance the Beneficial Effect of IFRS Adoption?

Sustainability ◽

10.3390/su11030885 ◽

2019 ◽

Vol 11 (3) ◽

pp. 885 ◽

Cited By ~ 2

Author(s):

Jaeyon Chu ◽

Kyongsun Heo ◽

Jinhan Pae

Keyword(s):

Corporate Governance ◽

Beneficial Effect ◽

Stock Price ◽

Earnings Forecasts ◽

Governance Structure ◽

Forecast Errors ◽

Corporate Governance Structure ◽

Ifrs Adoption ◽

Prior Literature ◽

Specific Factors

Prior literature suggests that the effect of adopting the International Financial ReportingStandards (IFRS) could vary by country-specific or firm-specific factors. In particular, we focus onthe effect of the strength of corporate governance of a firm, a firm-specific characteristic, prior tothe adoption of IFRS. Specifically, we use the Korea Corporate Governance Stock Price Index, ametric for the corporate governance structure in Korea, to examine whether the corporategovernance structure influences the effect of IFRS adoption on the analyst’s earnings forecasts inKorea. We find that the beneficial effect of IFRS adoption on analyst forecast errors is observed forfirms with moderate corporate governance prior to IFRS adoption, but not for firms with superioror inferior corporate governance. We interpret our findings such that firms with strong or weakcorporate governance do not benefit from IFRS adoption, because firms with strong corporategovernance already had transparent information system prior to IFRS adoption and firms withweak corporate governance failed to implement IFRS properly.

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