Cai, Lei
[Verfasser:in]
;
Rahman, Asheq Razaur
[Sonstige Person, Familie und Körperschaft];
Courtenay, Stephen M.
[Sonstige Person, Familie und Körperschaft]
The Effect of IFRS and its Enforcement on Earnings Management
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 10, 2008 erstellt
Beschreibung:
Widespread adoption of International Financial Reporting Standards (IFRS) is expected to improve accounting quality. IFRS is issued by the International Accounting Standards Board (IASB), but the IASB has no power to enforce the standards. Many are concerned that without adequate enforcement mechanisms, the benefits of IFRS adoption will be minimal. We examine the effect of IFRS and its enforcement on earnings management in financial reporting using over 100,000 firm-year observations from 2000 to 2006 across 32 countries. We conduct this examination by using a modified measure of enforcement developed by Hope (2003). We find that earnings management in IFRS adoption countries has been decreasing in recent years. The results also show that countries with stronger enforcement generally have less earnings management