Mandatory IFRS adoption and earnings quality in different institutional settings: a comparison between Italy and the UK

Domenico Campa and Ray Donnelly

International Journal of Accounting, Auditing and Performance Evaluation, 2016, vol. 12, issue 1, 24-44

Abstract: Evidence pertaining to the effect of IFRS adoption on earnings quality in the EU is mixed with results varying by country. Potential reasons for the conflicting results include the diverse institutional settings in which European firms operate as well as methodological issues. We use a sample of firms operating in Italy and in the UK, matched on the basis of size and industry, to examine the relative changes in earnings quality after the mandatory IFRS introduction. Our results refute the suggestion that IFRS are not suitable for code law countries while they accept the evidence that IFRS do not improve earnings quality when it is already at an adequate level.

Keywords: earnings quality; mandatory IFRS adoption; institutional settings; Italy; UK; United Kingdom; firm size; industry sector; code law countries. (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=73886 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijaape:v:12:y:2016:i:1:p:24-44

Access Statistics for this article

More articles in International Journal of Accounting, Auditing and Performance Evaluation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().