IFRS adoption and firms’ opacity around the world: what factors affect this relationship?
Purpose - This paper aims to identify what are the moderating factors affecting the relationship between firms’ adoption of international financial and reporting standards (IFRS) and the firm’s opacity. - Design/methodology/approach - This study uses the meta-analysis methodology from Hunter et al....
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2021-07-01
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| Series: | Journal of Economics Finance and Administrative Science |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JEFAS-02-2020-0060/full/pdf?title=ifrs-adoption-and-firms-opacity-around-the-world-what-factors-affect-this-relationship |
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| author | Samuel Arturo Mongrut Manuel Tello Marín Maria del Carmen Torres Postigo Darcy Fuenzalida O’Shee |
| author_facet | Samuel Arturo Mongrut Manuel Tello Marín Maria del Carmen Torres Postigo Darcy Fuenzalida O’Shee |
| author_sort | Samuel Arturo Mongrut |
| collection | DOAJ |
| description | Purpose - This paper aims to identify what are the moderating factors affecting the relationship between firms’ adoption of international financial and reporting standards (IFRS) and the firm’s opacity. - Design/methodology/approach - This study uses the meta-analysis methodology from Hunter et al. (1982) to find if the mere IFRS adoption reduces firm’s opacity and a meta-regression from Stanley and Jarrell (1989) to identify the moderating factors that may influence this relationship. Findings - Contrary to previous studies, this study finds a low, negative and nonsignificant correlation between IFRS adoption and firms’ opacity, but this relationship depends on the geographical region. Using 34 results from 28 studies from different continents published between 2005 and 2018 this study finds that IFRS adoption reduces opacity in countries with common law (COML) and with more authorities’ oversight and power to enforce the rules. Originality/value - This study finds two institutional commonalities between different previous studies that intend to assess the impact of the IFRS adoption upon firms’ opacity: the legal system and the authorities’ oversight power. |
| first_indexed | 2024-04-12T04:35:23Z |
| format | Article |
| id | doaj.art-1a7a793fc9a846f19d868fe3d0474ba7 |
| institution | Directory Open Access Journal |
| issn | 2077-1886 2218-0648 |
| language | English |
| last_indexed | 2024-04-12T04:35:23Z |
| publishDate | 2021-07-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Economics Finance and Administrative Science |
| spelling | doaj.art-1a7a793fc9a846f19d868fe3d0474ba72022-12-22T03:47:48ZengEmerald PublishingJournal of Economics Finance and Administrative Science2077-18862218-06482021-07-01265172110.1108/JEFAS-02-2020-0060666911IFRS adoption and firms’ opacity around the world: what factors affect this relationship?Samuel Arturo Mongrut0Manuel Tello Marín1Maria del Carmen Torres Postigo2Darcy Fuenzalida O’Shee3Tecnologico de Monterrey, EGADE Business School, Mexico and Universidad del Pacifico, Lima, PeruBanco de Credito del Peru, Lima, PeruBanco de Credito del Peru, Lima, PeruDepartamento de Industrias, Universidad Tecnica Federico Santa Maria, Valparaiso, ChilePurpose - This paper aims to identify what are the moderating factors affecting the relationship between firms’ adoption of international financial and reporting standards (IFRS) and the firm’s opacity. - Design/methodology/approach - This study uses the meta-analysis methodology from Hunter et al. (1982) to find if the mere IFRS adoption reduces firm’s opacity and a meta-regression from Stanley and Jarrell (1989) to identify the moderating factors that may influence this relationship. Findings - Contrary to previous studies, this study finds a low, negative and nonsignificant correlation between IFRS adoption and firms’ opacity, but this relationship depends on the geographical region. Using 34 results from 28 studies from different continents published between 2005 and 2018 this study finds that IFRS adoption reduces opacity in countries with common law (COML) and with more authorities’ oversight and power to enforce the rules. Originality/value - This study finds two institutional commonalities between different previous studies that intend to assess the impact of the IFRS adoption upon firms’ opacity: the legal system and the authorities’ oversight power.https://www.emerald.com/insight/content/doi/10.1108/JEFAS-02-2020-0060/full/pdf?title=ifrs-adoption-and-firms-opacity-around-the-world-what-factors-affect-this-relationshipearnings managementopacityifrs |
| spellingShingle | Samuel Arturo Mongrut Manuel Tello Marín Maria del Carmen Torres Postigo Darcy Fuenzalida O’Shee IFRS adoption and firms’ opacity around the world: what factors affect this relationship? Journal of Economics Finance and Administrative Science earnings management opacity ifrs |
| title | IFRS adoption and firms’ opacity around the world: what factors affect this relationship? |
| title_full | IFRS adoption and firms’ opacity around the world: what factors affect this relationship? |
| title_fullStr | IFRS adoption and firms’ opacity around the world: what factors affect this relationship? |
| title_full_unstemmed | IFRS adoption and firms’ opacity around the world: what factors affect this relationship? |
| title_short | IFRS adoption and firms’ opacity around the world: what factors affect this relationship? |
| title_sort | ifrs adoption and firms opacity around the world what factors affect this relationship |
| topic | earnings management opacity ifrs |
| url | https://www.emerald.com/insight/content/doi/10.1108/JEFAS-02-2020-0060/full/pdf?title=ifrs-adoption-and-firms-opacity-around-the-world-what-factors-affect-this-relationship |
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