Joint Effect of Culture and Mandatory IFRS Adoption on Earning Quality - A Test of the Secrecy Hypothesis

2013 ◽  
Author(s):  
Nurul Houqe
Keyword(s):  
Joint Effect ◽  
Ifrs Adoption ◽  
Earning Quality

scholarly journals The impact of IFRS-based accounting standards on earnings management: evidence from Malaysia

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Yosra Makni Fourati ◽  
Rania Chakroun Ghorbel
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Emerging Market ◽  
Accounting Standards ◽  
Absolute Value ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Earning Quality ◽  
The Impact ◽  
Different Levels

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.

The impact of mandatory IFRS adoption on capital markets: evidence from Korea

2018 ◽  
Vol 26 (1) ◽  
pp. 38-58 ◽  
Author(s):  
Saerona Kim ◽  
Haeyoung Ryu
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Joint Effect ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
Ifrs Adoption ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the effects of adoption of the mandatory International Financial Reporting Standards (IFRS) on the cost of equity capital in a unique Korean setting. In Korea, individual financial statements were taken as primary financial statements. Before the adoption of IFRS, consolidated financial statements were taken as supplementary financial statements. Design/methodology/approach The authors measure the cost of equity using the average estimates from the implied cost of capital models proposed by Claus and Thomas (2001), Gebhardt et al. (2001), Easton (2004) and Ohlson and Juettner-Nauroth (2005), using it as the primary dependent variable. Mandatory IFRS adoption, the independent variable in this study, is assigned a value of 1 for the post-adoption period and 0 otherwise. Findings Using a sample of listed Korean companies during the period from 2000 to 2013, the authors find evidence of a significant reduction in the cost of equity capital in Korean listed companies after mandatory adoption of the IFRS in 2011, after controlling for a set of market variables. Originality/value This study is one of a growing body of literature on the relations between mandatory IFRS adoption and the cost of equity capital (Easley and O’Hara 2004; Covrig et al. 2007; Lambert et al. 2007; Daske et al. 2008). According to the results of this study, increased financial disclosure and enhanced information comparability, along with changes in legal and institutional enforcement, seem to have had a joint effect on the cost of equity capital, leading to a large decrease in expected equity returns.

scholarly journals EARNING QUALITY AND POTENTIAL BANKRUPTCY OF ISLAMIC BANKS: INDONESIA VERSUS MALAYSIA

2018 ◽  
Vol 7 (2) ◽  
Author(s):  
Grandis Imama Hendra
Keyword(s):  
Financial Reporting ◽  
Earnings Quality ◽  
Islamic Banks ◽  
Loan Loss ◽  
Loan Loss Provision ◽  
Ifrs Adoption ◽  
Before And After ◽  
The Difference ◽  
Score Model ◽  
Earning Quality

This study aims to analyze the difference in earning quality and potential bankruptcy of Islamic banks before and after the adoption of IFRS and to analyze the relationship of earnings quality and potential bankruptcy to the operating cash flow of Islamic bank. Data obtained from the financial statements of 12 Islamic banks in Indonesia and 17 Islamic banks in Malaysia with financial reporting period from 2010 to 2016. Earning quality is measured by discretion of loan loss provision and the potential bankruptcy of Islamic banks is measured using the Altman z score model. The results show that the earning quality of Islamic banks did not have significant differences between before and after IFRS adoption. While Islamic banks in Malaysia have significant differences between before and after the adoption of IFRS. Islamic banks in both countries do not have the potential bankruptcy difference between before and after IFRS adoption. The earnings quality decreased when the potential bankruptcy at high levels.===================================================================Kualitas Laba dan Potensi Kebangkrutan Bank Syariah: Indonesia Versus Malaysia. Penelitian ini bertujuan untuk menganalisis perbedaan kualitas laba dan potensi kebangkrutan bank syariah sebelum dan sesudah adopsi IFRS dan untuk menganalisis hubungan kualitas laba dan potensi kebangkrutan dengan arus kas operasi bank syariah. Data diperoleh dari laporan keuangan 12 bank syariah di Indonesia dan 17 bank syariah di Malaysia dengan periode pelaporan keuangan dari 2010 hingga 2016. Kualitas laba diukur dengan diskresi cadangan kerugian pembiayaan dan potensi kebangkrutan bank syariah diukur dengan menggunakan model Altman z skor. Hasil penelitian menunjukkan bahwa kualitas laba bank syariah tidak memiliki perbedaan yang signifikan antara sebelum dan sesudah adopsi IFRS. Sementara bank syariah di Malaysia memiliki perbedaan signifikan antara sebelum dan sesudah adopsi IFRS. Bank syariah di kedua negara tidak memiliki perbedaan potensi kebangkrutan antara sebelum dan sesudah adopsi IFRS. Kualitas laba menurun ketika potensi kebangkrutan di level tinggi.

Does It Matter How I Say It?

2015 ◽  
Vol 14 (2) ◽  
pp. 104-108 ◽  
Author(s):  
Dan S. Chiaburu ◽  
Ann Chunyan Peng ◽  
Linn Van Dyne
Keyword(s):  
Perspective Taking ◽  
Joint Effect ◽  
Overall Performance ◽  
Low Levels

We conducted an experiment to examine the effect of how subordinates present ideas (constructive vs. complaining form) on supervisor (receiver) responses (perceptions of subordinate intrusiveness and of overall performance). We demonstrated a joint effect of subordinate idea presentation (manipulated) and supervisor dogmatism (measured) such that supervisors with high levels of dogmatism rated subordinates who presented voice constructively as more intrusive and lower in performance than those with low dogmatism. Supervisor perspective taking mediated these relationships. Our findings highlight the importance of presenting ideas in a constructive form to receivers with low levels of dogmatism.

Why Do Firms Write Off Their Goodwill? A Comparison of Different Accounting Systems

2015 ◽  
pp. 23-40 ◽  
Author(s):  
Francesco Avallone ◽  
Claudia Gabbioneta ◽  
Paola Ramassa ◽  
Marco Sorrentino
Keyword(s):  
Good Deal ◽  
Financial Statements ◽  
Cash Flows ◽  
Accounting System ◽  
Anglo Saxon ◽  
Accounting Systems ◽  
Ifrs Adoption ◽  
The Future

Increased comparability of financial statements across adopting countries is one of the main objectives of IFRS adoption. The level of achievement of this objective, however, is still debatable. While some studies have documented that crosscountry comparability of financial statements has increased after IFRS adoption, other studies have found that comparability has actually decreased since 2005. We contribute to this debate by studying whether the motivations for goodwill writeoff are the same or vary across countries with different accounting systems. Although a good deal of research has investigated the motivations for goodwill writeoff, our study is the first to analyze whether these motivations vary across countries with different accounting systems. We find that firms that expect low cash flows in the future are more likely to report goodwill write-offs if they are located in countries with an Anglo-Saxon accounting system than if they are located in countries with a Continental accounting system. These results suggest that IFRS are "interpreted" differently in different countries and that harmonization of financial statements has not been fully achieved yet.

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