The role of the national institutional environment in IFRS convergence: A new approach
This study uses an ideal setting to capture the influence of the national institutional environment on outcomes (i.e., earnings quality) of IFRS convergence using a within-country approach. We show that earnings quality in terms of discretionary accruals and persistence has increased, while conserva...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Wiley-Blackwell
2020
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| Online Access: | http://hdl.handle.net/20.500.11937/86028 |
| _version_ | 1848764779957583872 |
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| author | Cao, June Patel, Chris |
| author_facet | Cao, June Patel, Chris |
| author_sort | Cao, June |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study uses an ideal setting to capture the influence of the national institutional environment on outcomes (i.e., earnings quality) of IFRS convergence using a within-country approach. We show that earnings quality in terms of discretionary accruals and persistence has increased, while conservatism has decreased after IFRS convergence. The results are more pronounced in companies with a strong institutional environment. Our results are robust after considering incentives and other confounding factors. Our findings show differences in earnings quality in firms within a country adopting the same standards, let alone in firms worldwide. This indicates the context embeddedness of accounting standards. |
| first_indexed | 2025-11-14T11:24:47Z |
| format | Journal Article |
| id | curtin-20.500.11937-86028 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:24:47Z |
| publishDate | 2020 |
| publisher | Wiley-Blackwell |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-860282021-10-27T03:38:10Z The role of the national institutional environment in IFRS convergence: A new approach Cao, June Patel, Chris This study uses an ideal setting to capture the influence of the national institutional environment on outcomes (i.e., earnings quality) of IFRS convergence using a within-country approach. We show that earnings quality in terms of discretionary accruals and persistence has increased, while conservatism has decreased after IFRS convergence. The results are more pronounced in companies with a strong institutional environment. Our results are robust after considering incentives and other confounding factors. Our findings show differences in earnings quality in firms within a country adopting the same standards, let alone in firms worldwide. This indicates the context embeddedness of accounting standards. 2020 Journal Article http://hdl.handle.net/20.500.11937/86028 10.1111/acfi.12525 http://creativecommons.org/licenses/by/4.0/ Wiley-Blackwell fulltext |
| spellingShingle | Cao, June Patel, Chris The role of the national institutional environment in IFRS convergence: A new approach |
| title | The role of the national institutional environment in IFRS convergence: A new approach |
| title_full | The role of the national institutional environment in IFRS convergence: A new approach |
| title_fullStr | The role of the national institutional environment in IFRS convergence: A new approach |
| title_full_unstemmed | The role of the national institutional environment in IFRS convergence: A new approach |
| title_short | The role of the national institutional environment in IFRS convergence: A new approach |
| title_sort | role of the national institutional environment in ifrs convergence: a new approach |
| url | http://hdl.handle.net/20.500.11937/86028 |