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An analysis of the effect of mandatory adoption of IAS/IFRS on earnings management

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  • Zéghal, Daniel
  • Chtourou, Sonda
  • Sellami, Yosra Mnif

Abstract

This paper examines whether mandatory adoption of international accounting standards, IAS/IFRS, by French companies is associated with lower earnings management. In addition, the impact of six factors that may be related to earnings management level are also considered: the independence and the efficiency of the board of directors, the separation of roles of CEO and Chairman of the board, the existence of an independent audit committee, the existence of block shareholders, the quality of the external audit and the listing on foreign financial markets.

Suggested Citation

  • Zéghal, Daniel & Chtourou, Sonda & Sellami, Yosra Mnif, 2011. "An analysis of the effect of mandatory adoption of IAS/IFRS on earnings management," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(2), pages 61-72.
    • Handle: RePEc:eee:jiaata:v:20:y:2011:i:2:p:61-72
    DOI: 10.1016/j.intaccaudtax.2011.06.001
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