IDEAS home Printed from https://ideas.repec.org/a/asi/ajoerj/v11y2021i5p41-49id4344.html
   My bibliography  Save this article

The Effects of International Financial Reporting Standard Adoption on Conservatism in Malaysian Banks

Author

Listed:
  • Wan Rabia’tul A’dawiyah Wan Abdullah
  • Marziana Madah Marzuki

Abstract

The purpose of this study is to investigate the effect of IFRS full convergence in 2012 on conservatism of banks in Malaysia. Based on 66 firm-year observations of Malaysian banks listed in the main market of Bursa Malaysia, the results of this study reveal an overall increase in conservatism during the study period and a higher increase of conservatism following IFRS adoption. The results also provide evidence of significant differences in the level of conservatism in pre- and post-adoption of IFRS. The findings of this study highlight the benefit of IFRS full convergence among the banks in Malaysia in enhancing financial reporting quality proxied by conservatism. Thus, this study provide implication to the regulators and banks to continually support IFRS adoption as the standard continually change over the time. Our result also provides new evidence on the effect of IFRS on conservatism for financial sector which have different regulatory framework from other sectors.

Suggested Citation

  • Wan Rabia’tul A’dawiyah Wan Abdullah & Marziana Madah Marzuki, 2021. "The Effects of International Financial Reporting Standard Adoption on Conservatism in Malaysian Banks," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 11(5), pages 41-49.
    • Handle: RePEc:asi:ajoerj:v:11:y:2021:i:5:p:41-49:id:4344
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5004/article/view/4344/6705
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajoerj:v:11:y:2021:i:5:p:41-49:id:4344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5004/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.