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The effect of the mandatory implementation of IFRS on the accounting quality of Dutch companies

Koster, Nick (2016) The effect of the mandatory implementation of IFRS on the accounting quality of Dutch companies.

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Abstract:In the last years, a lot has been written about the effects of IFRS on the accounting quality, but it has not been done for the Dutch companies. Hence, this thesis will be about the effect of IFRS on accounting quality in Dutch companies in the period 2002 till 2007. The sample consists of 80 companies. The accounting quality will be measured by earnings management and income smoothing. Both of these measures can be calculated by the discretionary accruals. To calculate the discretionary accruals, the Modified Jones model has been used. The outcome was that there is no significant difference in earnings management and income smoothing in the periods before and after implementation of IFRS. As they are the measures, there is also no significant difference in the accounting quality between the two periods. So it can be concluded that there is no significant difference in accounting quality after implementation of IFRS. This is in line with prior literature as there are articles that also did not find a difference between the two periods. The fact that this is based on a small sample in comparison to other researches needs to be taken into account when looking at the results.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/70198
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