IFRS Adoption, Extent of Disclosure, and Perceived Corruption: A Cross-Country Study

Muhammad Nurul Houqe and Reza M. Monem

The International Journal of Accounting, 2016, vol. 51, issue 3, 363-378

Abstract: We investigate whether IFRS adoption and the extent of disclosure in a country play any role in reducing perceived corruption, after controlling for the effects of political institutions and economic development. The sample covers 104 countries over the period 2009–2011. We find strong evidence that the length of IFRS experience and the extent of disclosure are negatively related to perceived corruption in a country. We also find that relative to developed countries, developing countries benefit more from IFRS experience in lowering perceived corruption. Our results are robust to several sensitivity tests, including alternative models, alternative measures of perceived corruption, and controlling for endogeneity. Our findings are important because critics have questioned the merit of IFRS adoption by developing countries with weak institutional settings.

Keywords: Corruption perception; IFRS; Extent of disclosure; Accounting environment; Political institutions; Economic development (search for similar items in EconPapers)
JEL-codes: G38 K42 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 (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0020706316300735
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:51:y:2016:i:3:p:363-378

DOI: 10.1016/j.intacc.2016.07.002

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 ().