Mandatory Adoption of International Financial Reporting Standards and Earnings Management: Evidence from China

2014 ◽  
Author(s):  
Zining Li ◽  
Qiliang Liu ◽  
Gerald J. Lobo ◽  
Le Luo
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Mandatory Adoption

scholarly journals PERFORMANCE APPRAISAL AS A PREDICTOR OF EARNINGS MANAGEMENT IN A CONSUMER GOODS COMPANY: EVIDENCE FROM A COMPARATIVE ASSESSMENT OF PRE-AND POST INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION IN NIGERIA

2020 ◽  
pp. 28-33
Author(s):  
Paul Femi Fashagba ◽  
Abiola Abosede Solanke
Keyword(s):  
Earnings Management ◽  
Performance Appraisal ◽  
Financial Reporting ◽  
Consumer Good ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Ratio Data ◽  
Negative Effect

Previous studies have examined the effects of International Financial Reporting Standards (IFRS) adoption on earnings management. However, these studies focused attention on the general implications of IFRS adoption on earnings management with no specific focus on the links between performance appraisal and earnings management in the pre and post IFRS era. The objective of the study is to examine the relationship between performance appraisal and earnings management in Pre and Post IFRS period. The dependent variable in the study is earnings management proxy by earnings per share. The independent variable is performance appraisal measured by profitability ratio, liquidity ratio, and debt ratio. Data were extracted from the records of a consumer good company in Nigeria. The multiple regression analysis was applied. Results revealed that in the pre IFRS period in Nigeria, performance appraisal had significant positive effect on earnings management, while it had significant negative effect in the post IFRS period. It is important that company’s management adhere strictly to the provisions of the IFRS guidelines. KEYWORDS: IFRS, earnings management, profitability, liquidity, debt

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