Impact of IFRS Adoption on Accounting Quality in European Firms

• Tipo: Artigo em Revista Científica Internacional
• Data: 2010

Autores

Lopes, Claudia (Autor) FEP; Cerqueira, António (Autor) FEP; Brandão, Elísio (Autor) FEP

Revista

Título: Journal of Modern Accounting and Auditing

Vol. 6 Nº 9

Páginas: 20-31

ISSN: 1548-6583

Classificação Científica

FOS: Ciências sociais > Economia e gestão

Outras Informações

DOI: 10.17265/1548-6583/2010.09.002

Abstract (EN): In this paper it is examined whether firms following International Financial Reporting Standards (IFRS) exhibit higher accounting quality. While IFRS are supposed to improve international comparisons by harmonisation and definition of strong principles, Ball (2006) and Nobes (2006) were concerned about differences in the application of IFRS cross-countries and firms. Barth, Landsman & Lang (2008) stated that the flexibility of principles- based International Accounting Standards (IAS) could create incentives for firms to manage earnings. This paper contributes to analyse the impact of IFRS on accounting quality for European firms. The findings show that for firms in the European Union (EU) IFRS produce a negative effect on accounting quality that continues after 2005, when IFRS becomes mandatory. By contrast, for European firms which are not EU members the IFRS adoption increases accounting quality. These results support the concerns about IFRS application and flexibility and indicate that accounting quality does not improve just because the adoption of IFRS is mandatory.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Notas: http://www.davidpublisher.org/index.php/Home/Journal/detail?journalid=12&jx=JMAA&cont=allissues