DOES EARNINGS MANAGEMENT CHANGE AFTER THE ADOPTION OF THE IFRS? EVIDENCE FROM ROMANIA

Laura Brad, Radu Ciobanu and Florin Dobre
Additional contact information
Laura Brad: The Bucharest University of Economic Studies
Radu Ciobanu: The Bucharest University of Economic Studies
Florin Dobre: The Bucharest University of Economic Studies

Studii Financiare (Financial Studies), 2016, vol. 20, issue 1, 21-36

Abstract: Once that International Financial Reporting Standards are used for individual financial reporting, we expect that companies are going to achieve an increase in the financial reporting due to a higher degree of transparency. The present research tries to emphasize if there is any significant difference between the value of earnings management computed by using the national and the international accounting measures. The research is conducted on Romanian capital market, into the listed companies. The results of the research are mixed. While an improvement in the variability of net profit is observed (both for individual and bootstrapping with replacement analysis), the correlation between accruals and cash flow from operation is more negative (using both estimations techniques). The results on the differences of cash flow from operations also show an increase in the value of earnings management.

Keywords: Financial performance; International Accounting regulation; Romanian Accounting Standards (search for similar items in EconPapers)
JEL-codes: G30 M41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.icfm.ro/RePEc/vls/vls_pdf/vol20i1p21-36.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vls:finstu:v:20:y:2016:i:1:p:21-36

Access Statistics for this article

More articles in Studii Financiare (Financial Studies) from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Mateescu ().