Title

The effect of IFRS adoption and investor protection on earnings quality around the world

Date of this Version

9-1-2012

Document Type

Journal Article

Publication Details

Citation only

Nurul Houqe, M., van Zijl, T., Dunstan, K., & Waresul Karim, A.K.M. (2012). The effect of IFRS adoption and investor protection on earnings quality around the world. The International Journal of Accounting, 47(3), 333–355

Access the journal

2012 HERDC submission. FoR codes: 150104

© Copyright Elsevier B.V., 2013

ISSN

0020-7063

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.

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This document has been peer reviewed.