IFRS adoption and information quality: evidence from emerging market
The IASB was established in order to produce a single set of high quality, understandable and enforceable accounting standards, namely the IFRS. Most of the existing studies about the IFRS have largely focused on advanced countries adoption, while the present study fills a gap in the existing lite...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
FEP
2014
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| Online Access: | http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/1/8755-23243-1-SM.pdf |
| _version_ | 1848811806048387072 |
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| author | Seyed Sajad Ebrahimi Rad, Zaini Embong, |
| author_facet | Seyed Sajad Ebrahimi Rad, Zaini Embong, |
| author_sort | Seyed Sajad Ebrahimi Rad, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The IASB was established in order to produce a single set of high quality, understandable and enforceable accounting
standards, namely the IFRS. Most of the existing studies about the IFRS have largely focused on advanced countries adoption,
while the present study fills a gap in the existing literature by studying the effect of IFRS adoption on information quality
in an emerging market. A number of studies indicate that this new set of standards is primarily aimed at countries with
highly developed capital market, and it can be questioned whether the resulting standards are optimal for developing
and transitional economies. This study attempts to examine whether there is any significant association between IFRS
adoption and market perspective of information quality, proxied by bid-ask spread. The sample comprises a balanced
panel of 858 firm-year observations of listed firms under the Main Board of Bursa Malaysia. Results of the study shows
that the implementation of IFRS generally reinforces information quality. Taken together, our results are consistent with
the view that IFRS represent a vehicle through which countries can improve information quality and make their capital
markets more efficient and accessible to investors. This is the first published study that investigates the impact of IFRS
adoption on information quality of an emerging market. The nature of the information environment of capital market in
Malaysia provides us with enough motivations to investigate the impacts of this new set of standards on information quality |
| first_indexed | 2025-11-14T23:52:15Z |
| format | Article |
| id | oai:generic.eprints.org:8505 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:52:15Z |
| publishDate | 2014 |
| publisher | FEP |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:85052016-12-14T06:47:22Z http://journalarticle.ukm.my/8505/ IFRS adoption and information quality: evidence from emerging market Seyed Sajad Ebrahimi Rad, Zaini Embong, The IASB was established in order to produce a single set of high quality, understandable and enforceable accounting standards, namely the IFRS. Most of the existing studies about the IFRS have largely focused on advanced countries adoption, while the present study fills a gap in the existing literature by studying the effect of IFRS adoption on information quality in an emerging market. A number of studies indicate that this new set of standards is primarily aimed at countries with highly developed capital market, and it can be questioned whether the resulting standards are optimal for developing and transitional economies. This study attempts to examine whether there is any significant association between IFRS adoption and market perspective of information quality, proxied by bid-ask spread. The sample comprises a balanced panel of 858 firm-year observations of listed firms under the Main Board of Bursa Malaysia. Results of the study shows that the implementation of IFRS generally reinforces information quality. Taken together, our results are consistent with the view that IFRS represent a vehicle through which countries can improve information quality and make their capital markets more efficient and accessible to investors. This is the first published study that investigates the impact of IFRS adoption on information quality of an emerging market. The nature of the information environment of capital market in Malaysia provides us with enough motivations to investigate the impacts of this new set of standards on information quality FEP 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8505/1/8755-23243-1-SM.pdf Seyed Sajad Ebrahimi Rad, and Zaini Embong, (2014) IFRS adoption and information quality: evidence from emerging market. Asian Journal of Accounting and Governance, 5 . pp. 37-45. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/563 |
| spellingShingle | Seyed Sajad Ebrahimi Rad, Zaini Embong, IFRS adoption and information quality: evidence from emerging market |
| title | IFRS adoption and information quality: evidence from emerging market |
| title_full | IFRS adoption and information quality: evidence from emerging market |
| title_fullStr | IFRS adoption and information quality: evidence from emerging market |
| title_full_unstemmed | IFRS adoption and information quality: evidence from emerging market |
| title_short | IFRS adoption and information quality: evidence from emerging market |
| title_sort | ifrs adoption and information quality: evidence from emerging market |
| url | http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/1/8755-23243-1-SM.pdf |