IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v9y2017i5p44-57.html
   My bibliography  Save this article

Effects of IFRS on Accounting Information Quality: Evidence for Brazil

Author

Listed:
  • Julio Cesar Araujo da Silva Junior
  • Joao F. Caldeira
  • Hudson da Silva Torrent

Abstract

Understanding the effects of the International Financial Reporting Standards (IFRS) on accounting quality is fundamental for policy makers and financial market players in general. This paper analyzes whether the adoption of IFRS in Brazil has had the impact on accounting informational quality. To this end, a differentiated empirical strategy was adopted based on two steps: first, a matching of voluntary adopters of norms and non-adopters by propensity score is performed to construct control groups. This is important to mitigate the selection bias problem. Second, the measures of value relevance, timeliness and conservatism of accounting information are estimated using panel data models. The period of analysis extends from 2006 to 2010, with annual information for the first stage and quarterly for the second. The results show a positive impact of international standards on the value relevance. However, for the measures of timeliness and conservatism, sufficient evidence was not found to indicate any impact on the group of companies evaluated.

Suggested Citation

  • Julio Cesar Araujo da Silva Junior & Joao F. Caldeira & Hudson da Silva Torrent, 2017. "Effects of IFRS on Accounting Information Quality: Evidence for Brazil," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(5), pages 44-57, May.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:5:p:44-57
    as

    Download full text from publisher

    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/67715/36704
    Download Restriction: no
    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/67715
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, June.
    2. Barth, Mary E. & Beaver, William H. & Landsman, Wayne R., 2001. "The relevance of the value relevance literature for financial accounting standard setting: another view," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 77-104, September.
    3. Guido W. Imbens, 2015. "Matching Methods in Practice: Three Examples," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 373-419.
    4. Christopher S. Armstrong & Mary E. Barth & Alan D. Jagolinzer & Edward J. Riedl, 2008. "Market Reaction to the Adoption of IFRS in Europe," Harvard Business School Working Papers 09-032, Harvard Business School.
    5. Karampinis N. & Hevas D., 2009. "The Effect of the Mandatory Application of IFRS on the Value Relevance of Accounting Data: Some Evidence from Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 73-100.
    6. Ahmed, Kamran & Chalmers, Keryn & Khlif, Hichem, 2013. "A Meta-analysis of IFRS Adoption Effects," The International Journal of Accounting, Elsevier, vol. 48(2), pages 173-217.
    7. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Macías, Marta & Muiño, Flora, 2011. "Examining dual accounting systems in Europe," The International Journal of Accounting, Elsevier, vol. 46(1), pages 51-78, March.
    2. Francesco Paolone & Fabrizio Granà & Laura Martiniello & Riccardo Tiscini, 2021. "Environmental risk indicators disclosure and value relevance: An empirical analysis of Italian listed companies after the implementation of the Legislative Decree 254/2016," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1471-1482, September.
    3. Ahmed, Kamran & Chalmers, Keryn & Khlif, Hichem, 2013. "A Meta-analysis of IFRS Adoption Effects," The International Journal of Accounting, Elsevier, vol. 48(2), pages 173-217.
    4. Manganaris, Panayotis & Spathis, Charalambos & Dasilas, Apostolos, 2015. "The effects of mandatory IFRS adoption and conditional conservatism on European bank values," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 72-81.
    5. Voulgaris, Georgios & Stathopoulos, Konstantinos & Walker, Martin, 2014. "IFRS and the Use of Accounting-Based Performance Measures in Executive Pay," The International Journal of Accounting, Elsevier, vol. 49(4), pages 479-514.
    6. Mariarosaria Agostino & Danilo Drago & Damiano Silipo, 2011. "The value relevance of IFRS in the European banking industry," Review of Quantitative Finance and Accounting, Springer, vol. 36(3), pages 437-457, April.
    7. De George, Emmanuel T. & Li, Xi & Shivakumar, Lakshmanan, 2016. "A review of the IFRS adoption literature," LSE Research Online Documents on Economics 67599, London School of Economics and Political Science, LSE Library.
    8. Hasyyati Yusrina & Mukhtaruddin Mukhtaruddin & Luk Luk Fuadah & Zunaidah Sulong, 2017. "International Financial Reporting Standards Convergence and Quality of Accounting Information: Evidence from Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 433-447.
    9. Emmanuel T. De George & Xi Li & Lakshmanan Shivakumar, 2016. "A review of the IFRS adoption literature," Review of Accounting Studies, Springer, vol. 21(3), pages 898-1004, September.
    10. Günther, Nina & Gegenfurtner, Bernhard & Kaserer, Christoph & Achleitner, Ann-Kristin, 2009. "International financial reporting standards and earnings Quality: the myth of voluntary vs. mandatory adoption," CEFS Working Paper Series 2009-09, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    11. Kim, Oksana, 2016. "The IFRS Adoption Reform through the Lens of Neoinstitutionalism: The Case of the Russian Federation," The International Journal of Accounting, Elsevier, vol. 51(3), pages 345-362.
    12. Joos, P.P.M., 2008. "Is IFRS bringing higher reporting quality to the table?," Other publications TiSEM f616c046-7620-4c2e-9fad-9, Tilburg University, School of Economics and Management.
    13. Alessandro Mechelli & Riccardo Cimini, 2021. "The effect of corporate governance and investor protection environments on the value relevance of new accounting standards: the case of IFRS 9 and IAS 39," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1241-1266, December.
    14. Goncharov, Igor & Werner, Joerg R. & Zimmermann, Jochen, 2009. "Legislative demands and economic realities: Company and group accounts compared," The International Journal of Accounting, Elsevier, vol. 44(4), pages 334-362, December.
    15. Piotr Bolibok, 2014. "The impact of IFRS on the value relevance of accounting data of banks listed on the Warsaw Stock Exchange," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 3(1), pages 33-43.
    16. Masahiro Enomoto, 2018. "Cross-Country Research on Earnings Quality: A Literature Review and Future Opportunities," Discussion Paper Series DP2018-06, Research Institute for Economics & Business Administration, Kobe University, revised Oct 2020.
    17. Elbakry, Ashraf E. & Nwachukwu, Jacinta C. & Abdou, Hussein A. & Elshandidy, Tamer, 2017. "Comparative evidence on the value relevance of IFRS-based accounting information in Germany and the UK," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 28(C), pages 10-30.
    18. Shen, Chung-Hua & Wu, Meng-Wen & Chen, Ting-Hsuan & Fang, Hao, 2016. "To engage or not to engage in corporate social responsibility: Empirical evidence from global banking sector," Economic Modelling, Elsevier, vol. 55(C), pages 207-225.
    19. Castagnetti, Alessandro & Schmacker, Renke, 2022. "Protecting the ego: Motivated information selection and updating," European Economic Review, Elsevier, vol. 142(C).
    20. Marc F. Bellemare & Lindsey Novak, 2017. "Contract Farming and Food Security," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(2), pages 357-378.

    More about this item

    Keywords

    accounting information quality; Brazil; IFRS; panel data analysis; propensity score matching;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:ibn:ijefaa:v:9:y:2017:i:5:p:44-57. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.