The Impact of IFRS Mandatory Adoption on the Performance of Saudi Banks
Author:
Mohammad Mona Hassabelrasoul1, Shehab Lamia S.2, Turki Hela2, Ali Zahra Tajuddin Abdelgader2
Affiliation:
1. Department of Accounting, Faculty of Commerce, Azhar University, Dakahlia, EGYPT 2. College of Business, Jouf University, KINGDOM OF SAUDI ARABIA
Abstract
The study aims to determine the impact of IFRS mandatory application on financial and market performance, in the Saudi Arabian banking sector for the period from 2012 to 2021. The results of this study show that there is no relationship between the IFRS mandatory application and each of the rates, return on equity, and return on assets, while there is an inverse relationship with earnings per share. In terms of the effect on the market performance, the study concluded that there is no relationship between the IFRS mandatory application and each of the volume and value of trading, and there is a positive relationship on the growth rate. The study attributed these results to several reasons, the most important of which is the gradual application of the IFRS, which was followed by Saudi Arabia, in accordance with strict executive procedures from the Saudi Arabian Monetary Authority (SAMA).
Publisher
World Scientific and Engineering Academy and Society (WSEAS)
Subject
Economics and Econometrics,Finance,Business and International Management
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