The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq
Prior studies provide mixed evidence on whether the transition to International Financial Reporting Standards (IFRS) deters or contributes to greater financial reporting quality. Thus, this research investigates how the transition affects financial reporting quality. This study measures financial re...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Ferdowsi University of Mashhad
2021-05-01
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| Series: | Iranian Journal of Accounting, Auditing & Finance |
| Subjects: | |
| Online Access: | https://ijaaf.um.ac.ir/article_40229_da8587e2ea48e4a6496b54c728b77e02.pdf |
| _version_ | 1818209602807791616 |
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| author | Ahmed Al-janabi Reza Hesarzadeh Mohammad Ali Bagherpour Velashani |
| author_facet | Ahmed Al-janabi Reza Hesarzadeh Mohammad Ali Bagherpour Velashani |
| author_sort | Ahmed Al-janabi |
| collection | DOAJ |
| description | Prior studies provide mixed evidence on whether the transition to International Financial Reporting Standards (IFRS) deters or contributes to greater financial reporting quality. Thus, this research investigates how the transition affects financial reporting quality. This study measures financial reporting quality by earnings management and the value relevance of earnings. Using a sample of listed firms on the Iraq Stock Exchange during 2015–2019, the current study indicates no significant relationship between the transition to IFRS and earnings management. Further, the transition to IFRS positively affects the value relevance of earnings. Thus, collectively, the impact of the transition to IFRS is conditional to the proxies of financial reporting quality. This study contributes to the existing literature by providing empirical evidence regarding the impact of IFRS on financial reporting in an under-studied emerging market. This paper has important implications for regulators, standard setters, listed firms, and other stockholders. It shows that the transition to IFRS has positive effects even in firms from developing countries. |
| first_indexed | 2024-12-12T05:03:20Z |
| format | Article |
| id | doaj.art-8fd84f726b394708af3b8909b71bb019 |
| institution | Directory Open Access Journal |
| issn | 2717-4131 2588-6142 |
| language | English |
| last_indexed | 2024-12-12T05:03:20Z |
| publishDate | 2021-05-01 |
| publisher | Ferdowsi University of Mashhad |
| record_format | Article |
| series | Iranian Journal of Accounting, Auditing & Finance |
| spelling | doaj.art-8fd84f726b394708af3b8909b71bb0192022-12-22T00:37:11ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422021-05-0152112410.22067/ijaaf.2021.4022940229The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from IraqAhmed Al-janabi0Reza Hesarzadeh1Mohammad Ali Bagherpour Velashani2Faculty of Accounting, University of Kufa, Kufa, IraqFaculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, IranFaculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, IranPrior studies provide mixed evidence on whether the transition to International Financial Reporting Standards (IFRS) deters or contributes to greater financial reporting quality. Thus, this research investigates how the transition affects financial reporting quality. This study measures financial reporting quality by earnings management and the value relevance of earnings. Using a sample of listed firms on the Iraq Stock Exchange during 2015–2019, the current study indicates no significant relationship between the transition to IFRS and earnings management. Further, the transition to IFRS positively affects the value relevance of earnings. Thus, collectively, the impact of the transition to IFRS is conditional to the proxies of financial reporting quality. This study contributes to the existing literature by providing empirical evidence regarding the impact of IFRS on financial reporting in an under-studied emerging market. This paper has important implications for regulators, standard setters, listed firms, and other stockholders. It shows that the transition to IFRS has positive effects even in firms from developing countries.https://ijaaf.um.ac.ir/article_40229_da8587e2ea48e4a6496b54c728b77e02.pdfinternational financial reporting standardsfinancial reporting qualityearnings managementvalue relevance of earningsiraq stock exchange |
| spellingShingle | Ahmed Al-janabi Reza Hesarzadeh Mohammad Ali Bagherpour Velashani The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq Iranian Journal of Accounting, Auditing & Finance international financial reporting standards financial reporting quality earnings management value relevance of earnings iraq stock exchange |
| title | The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq |
| title_full | The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq |
| title_fullStr | The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq |
| title_full_unstemmed | The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq |
| title_short | The Impact of International Financial Reporting Standards on Financial Reporting Quality: Evidence from Iraq |
| title_sort | impact of international financial reporting standards on financial reporting quality evidence from iraq |
| topic | international financial reporting standards financial reporting quality earnings management value relevance of earnings iraq stock exchange |
| url | https://ijaaf.um.ac.ir/article_40229_da8587e2ea48e4a6496b54c728b77e02.pdf |
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