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The Influence of Second Wave IFRS adoption on Earnings Management: “A cross-country study”

Horst, Bram ter (2016) The Influence of Second Wave IFRS adoption on Earnings Management: “A cross-country study”.

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Abstract:The main aim of this paper is to examine whether adopting the accounting standard of IFRS during the second wave of IFRS adoption has an influence on discretionary accruals, which is used as proxy to determine accrual-based earnings management. Results of this paper have been obtained among 3144 publicly listed firms from 8 different countries worldwide. However, the overall result was negative but not significant suggesting adopting IFRS during the second wave of IFRS adoption has no direct influence on earnings management used among publicly listed firms. In addition this paper examined the influence of investor protection, the interaction variable of IFRS adoption during the second wave adoption period and investor protection and the firm factors of growth, leverage and size on earnings management. Obtained results in this paper indicate that a country’s investor protection is negatively related with earnings management. However, the interaction variable of IFRS adoption during the second wave adoption period and investor protection is positively related with earnings management. The firm factor of growth is both negatively and positively related with earnings management depending on the country. The firm factor of leverage is negatively related with earnings management which is similar to the firm factor of size.
Item Type:Essay (Master)
Clients:
1991, Nederland
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/70755
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