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IFRS and accounting quality: Additional evidence from Korea

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  • Key, Kimberly G.
  • Kim, Jeong Youn

Abstract

This study investigates accounting quality in South Korea after the country transitioned in 2011 from domestic accounting standards to International Financial Reporting Standards (IFRS). Several variables of earnings management and timely loss recognition proxy for accounting quality. Reports of Korea’s IFRS adoption process indicate strong commitment to successful and transparent implementation, and we predict and find increased accounting quality after IFRS adoption. The results confirm and extend initial research showing that IFRS has had positive effects on Korea’s capital markets and its accounting environment.

Suggested Citation

  • Key, Kimberly G. & Kim, Jeong Youn, 2020. "IFRS and accounting quality: Additional evidence from Korea," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:jiaata:v:39:y:2020:i:c:s1061951820300070
    DOI: 10.1016/j.intaccaudtax.2020.100306
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    References listed on IDEAS

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    Cited by:

    1. Cho, Meeok & Kim, Sehee & Kim, Yewon & Lee, Bryan Byung-Hee & Lee, Woo-Jong, 2021. "IFRS adoption and stock misvaluation: Implication to Korea discount," Research in International Business and Finance, Elsevier, vol. 58(C).
    2. Michael Amoh Asiedu & Emmanuel Mensah, 2023. "Re-examining the corporate governance – Firm performance nexus: Fresh evidence from a causal mediation analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2223414-222, December.
    3. Nurunnabi, Mohammad & Donker, Han & Jermakowicz, Eva K., 2022. "The impact of mandatory adoption of IFRS in Saudi Arabia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 49(C).
    4. Kimouche Bilal, 2021. "Accounting Reforms And Accounting Quality: Evidence From Algeria," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 27, pages 33-53, June.
    5. Georgakopoulos, Georgios & Gounopoulos, Dimitrios & Huang, Chen & Patsika, Victoria, 2022. "The impact of IFRS adoption on IPOs management earnings forecasts in Australia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 48(C).
    6. Daniela PORDEA & Alin-Constantin DUMITRESCU, 2021. "Convergence to IFRS in Romania – Score per Minute," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 19(162), pages 373-373, May.
    7. M N, Nikhil & Chakraborty, Suman & B M, Lithin & Lobo, Lumen Shawn, 2023. "Does the adoption of Ind AS affect the performance of firms in India?," MPRA Paper 117247, University Library of Munich, Germany, revised 18 Apr 2023.
    8. Bayar Gardi & Mehmet Aga & Nabaz Nawzad Abdullah, 2023. "Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS," Sustainability, MDPI, vol. 15(13), pages 1-19, June.

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    More about this item

    Keywords

    IFRS; Accounting quality; Korea;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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