The effect of IFRS adoption and investor protection on earnings quality around the world

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

Research output: Contribution to journalArticleResearchpeer-review

78 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)333-355
Number of pages23
JournalInternational Journal of Accounting
Volume47
Issue number3
DOIs
Publication statusPublished - Sep 2012

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Earnings quality
Investor protection
IFRS adoption
Earnings management
Financial reporting quality
Accounting practices
Management practices
Accounting earnings
Managers
Globe
Mechanism design

Cite this

Houqe, Muhammad Nurul ; van Zijl, Tony ; Dunstan, Keitha ; Karim, A. K M Waresul. / The effect of IFRS adoption and investor protection on earnings quality around the world. In: International Journal of Accounting. 2012 ; Vol. 47, No. 3. pp. 333-355.
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The effect of IFRS adoption and investor protection on earnings quality around the world. / Houqe, Muhammad Nurul; van Zijl, Tony; Dunstan, Keitha; Karim, A. K M Waresul.

In: International Journal of Accounting, Vol. 47, No. 3, 09.2012, p. 333-355.

Research output: Contribution to journalArticleResearchpeer-review

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