Abstract
Purpose
The purpose of this paper is to examine the effect of investor protection on earnings management before and after IFRS adoption.
Design/methodology/approach
A sample of 106 companies listed on Germany, France and Belgium stock markets for the pre-IFRS (2000-2004) and post-IFRS (2006-2011) periods was used. This research is based on a comparative study between the pre- and the post-IFRS periods.
Findings
The results showed that investor protection better explains earnings management after the transition to IFRS. The findings revealed that international standards and investor protection are significant in jointly explaining earnings management for the second reporting period.
Originality/value
The study gives rise to a score that is considered as a proxy of investor protection that regroups several macroeconomic indexes.
Subject
General Economics, Econometrics and Finance,Accounting,Management Information Systems
Reference57 articles.
1. International financial reporting standards (IFRS): pros and cons for investors;Accounting and Business Research,2006
2. The effect of international institutional factors on properties of accounting earnings;Journal of Accounting and Economics,2000
3. Accruals, accounting-based valuation models, and the prediction of equity values;Journal of Accounting, Auditing and Finance,2005
4. International accounting standards and accounting quality;Journal of Accounting Research,2008
5. Are IFRS-based and US GAAP-based accounting amounts comparable?;Journal of Accounting and Economics,2012
Cited by
14 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献