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Does Earnings Management Change After The Adoption Of The Ifrs? Evidence From Romania


  • BRAD, Laura

    (The Bucharest University of Economic Studies)

  • CIOBANU, Radu

    (The Bucharest University of Economic Studies)

  • DOBRE, Florin

    (The Bucharest University of Economic Studies)


Once that International Financial Reporting Standards are used for individual financial reporting, we expect that companies are going to achieve an increase in the financial reporting due to a higher degree of transparency. The present research tries to emphasize if there is any significant difference between the value of earnings management computed by using the national and the international accounting measures. The research is conducted on Romanian capital market, into the listed companies. The results of the research are mixed. While an improvement in the variability of net profit is observed (both for individual and bootstrapping with replacement analysis), the correlation between accruals and cash flow from operation is more negative (using both estimations techniques). The results on the differences of cash flow from operations also show an increase in the value of earnings management.

Suggested Citation

  • BRAD, Laura & CIOBANU, Radu & DOBRE, Florin, 2016. "Does Earnings Management Change After The Adoption Of The Ifrs? Evidence From Romania," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 20(1), pages 21-36.
  • Handle: RePEc:vls:finstu:v:20:y:2016:i:1:p:21-36

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    References listed on IDEAS

    1. Dimitropoulos, Panagiotis E. & Asteriou, Dimitrios & Kousenidis, Dimitrios & Leventis, Stergios, 2013. "The impact of IFRS on accounting quality: Evidence from Greece," Advances in accounting, Elsevier, vol. 29(1), pages 108-123.
    2. 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.
    3. Holger Daske, 2006. "Economic Benefits of Adopting IFRS or US-GAAP - Have the Expected Cost of Equity Capital Really Decreased?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(3-4), pages 329-373.
    4. Brenda van Tendeloo & Ann Vanstraelen, 2005. "Earnings management under German GAAP versus IFRS," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 155-180.
    5. Stefano Cascino & Joachim Gassen, 2012. "Comparability Effects of Mandatory IFRS Adoption," SFB 649 Discussion Papers SFB649DP2012-009, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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    Cited by:

    1. Mihaela Maria Mihalcea, 2020. "Earnings Quality on Bucharest Stock Exchange Regulated Market," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 997-1002, August.

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    More about this item


    Financial performance; International Accounting regulation; Romanian Accounting Standards;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General


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