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Does IFRS convergence really increase accounting qualities?Emerging market evidence

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  • Fuad, Fuad

    (Universitas Diponegoro Fakultas Ekonomika dan Bisnis, Semarang, Indonesia)

  • Juliarto, Agung

    (Universitas Diponegoro Fakultas Ekonomika dan Bisnis, Semarang, Indonesia)

  • Harto, Puji

    (Universitas Diponegoro Fakultas Ekonomika dan Bisnis, Semarang, Indonesia)

Abstract

This study aims to examine whether International Financial Reporting Standards (IFRS) convergence process adds value to the accounting quality dimensions, including accruals quality, earnings smoothing, timely loss recognition and earnings persistence. Particularly, the authors rely on panel data analyses using industrial companies’ data from 2008 until 2014, comprising 3,861 firm-years observations, in Indonesia. The results indicate that there is no conclusive evidence that all accounting quality dimensions including accruals quality, earnings smoothing, timely loss recognition and earnings persistence increased in post-IFRS convergence.

Suggested Citation

  • Fuad, Fuad & Juliarto, Agung & Harto, Puji, 2019. "Does IFRS convergence really increase accounting qualities?Emerging market evidence," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 24(48), pages 205-220.
    • Handle: RePEc:ris:joefas:0146
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    Cited by:

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    2. Monica Laura Zlati & Romeo Victor Ionescu & Valentin Marian Antohi, 2022. "Modelling the Vulnerability of Financial Accounting Systems during Global Challenges: A Comparative Analysis," Mathematics, MDPI, vol. 10(9), pages 1-21, April.
    3. Manasi Gokhale & Deepa Pillai, 2024. "Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review," Future Business Journal, Springer, vol. 10(1), pages 1-16, December.
    4. Piotr Staszkiewicz & Aleksander Werner, 2021. "Reporting and Disclosure of Investments in Sustainable Development," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    5. Shkulipa Lyudmyla, 2021. "Analysis of Impact of Changes in IFRSs on Convergence of Accounting Systems in World," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 31(3), pages 75-103, September.

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    More about this item

    Keywords

    IFRS convergence; Accounting quality; Accruals; Earnings smoothings; Timely loss recognition; Earnings persisntence;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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