The Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World

Muhammad Nurul Houqe, Tony van Zijl, Keitha Dunstan and A.K.M. Waresul Karim

The International Journal of Accounting, 2012, vol. 47, issue 3, 333-355

Abstract: This study examines the effects of mandatory IFRS adoption and investor protection on the quality of accounting earnings in forty-six countries around the globe. The results suggest that earnings quality increases for mandatory IFRS adoption when a country's investor protection regime provides stronger protection. This study extends the current literature that shows that accounting practices are influenced by country-level macro settings. The results highlight the importance of investor protection for financial reporting quality and the need for regulators to design mechanisms that limit managers' earnings management practices.

Keywords: Earnings quality; Discretionary accruals; Accruals quality; Earnings persistence; Micro governance; Macro governance (search for similar items in EconPapers)
JEL-codes: J3 K2 M4 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0020706312000635
Full text for ScienceDirect subscribers only

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:eee:accoun:v:47:y:2012:i:3:p:333-355

DOI: 10.1016/j.intacc.2012.07.003

Access Statistics for this article

The International Journal of Accounting is currently edited by A. R. Abdel-Khalik

More articles in The International Journal of Accounting from Elsevier
Bibliographic data for series maintained by Catherine Liu ().