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The Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World

  • Houqe, Muhammad Nurul
  • van Zijl, Tony
  • Dunstan, Keitha
  • Karim, A.K.M. Waresul
Registered author(s):

    This study examines the effects of mandatory IFRS adoption and investor protection on the quality of accounting earnings in forty-six countries around the globe. The results suggest that earnings quality increases for mandatory IFRS adoption when a country's investor protection regime provides stronger protection. This study extends the current literature that shows that accounting practices are influenced by country-level macro settings. The results highlight the importance of investor protection for financial reporting quality and the need for regulators to design mechanisms that limit managers' earnings management practices.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0020706312000635
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    Article provided by Elsevier in its journal The International Journal of Accounting.

    Volume (Year): 47 (2012)
    Issue (Month): 3 ()
    Pages: 333-355

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    Handle: RePEc:eee:accoun:v:47:y:2012:i:3:p:333-355
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620179

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