Noor Houqe, Tony van Zijl, K. Dunstan
Oct 5, 2011
Citations
26
Influential Citations
292
Citations
Quality indicators
Journal
20th Australasian Finance & Banking Conference 2007 (Archive)
Abstract
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.