The Effects of Mandatory IFRS Adoption on Accounting Information Quality: Empirical Evidence from Jordan
Abstract
This study examines the differences between the accounting quality (value relevance, timely loss recognition, earnings persistence and earnings management) during pre and post-mandatory IFRS adoption periods in Jordan. Data covering fifteen years (2001-2003) as pre-IFRS adoption and 2004-2015 as post-IFRS adoption) was collected via annual reports of the listed industrial and service sector firms on the Amman Stock Exchange (ASE). The findings show that there is no change in the value relevance of earnings pre and post-IFRS adoption based on the price model, whereas value relevance of book value of equity has reduced after the IFRS adoption. The earnings are more value relevant as per the return model after the IFRS adoption. Timely loss recognition is significantly lower after the adoption of IFRS. Earning persistence is increased after the IFRS adoption and finally, earnings management is lower for the Jordanian firms after the adoption of IFRS. In addition, these findings signify that IFRS adoption have not improved accounting quality in Jordan. This study contributes to the body of knowledge regarding IFRS and accounting information quality in the developing country’s context i.e. Jordan and provides a specific guidance for Jordanian regulators to make the IFRS adoption helpful for firms and investors.
References
References
1. Abu Risheh, K. E., & Al-Saeed, M. T. A. (2014). The impact of IFRS adoption on audit fees: Evidence from Jordan. Accounting & Management Information Systems/ Contabilitate si Informatica de Gestiune, 13(3), 35-54.
2. Aharony, J., R. Barniv, and H. Falk. (2010). The impact of mandatory IFRS adoption on equity valuation of accounting numbers for security investors in the EU. The European Accounting Review, 19 (3), 535-578.
3. Ahmed, A. S., Neel, M., & Wang, D. (2013). Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence. Contemporary Accounting Research, 30(4), 1344-1372.
4. Al-Khadash, H. A., & Abdullatif, M. (2010). Consequences of Fair Value Accounting for Financial Instruments in the Developing Countries: The Case of the Banking Sector in Jordan. Jordan journal of business administration,5(4), 92-104.
5. Al, A. S. S., & Abulaila, M. D. (2016) The impact of IFRS application on asymmetry accounting information and quality of earnings. European Journal of Accounting, Auditing and Finance Research, 4(7), 51- 83
6. Atwood, T. J., Drake, M. S., Myers, J. N., & Myers, L. A. (2011). Do earnings reported under IFRS tell us more about future earnings and cash flows? Journal of Accounting and Public Policy, 30(2), 103-121.
7. Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting znd Business Research, 36(sup1), 5-27.
8. Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 159-178.
9. Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: Comparative loss recognition timeliness. Journal of Accounting and Economics, 39(1), 83-128.
10. Ball, R., & Shivakumar, L. (2006). The role of accruals in asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(2), 207-242.
11. Ball, R., Robin, A., & Wu, J. S. (2003). Incentives versus standards: properties of accounting income in four East Asian countries. Journal 0f Accounting and Economics, 36(1), 235-270.
12. Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467-498.
13. Bartov, E., Goldberg, S. R., & Kim, M. (2005). Comparative value relevance among German, US, and international accounting standards: A German stock market perspective. Journal of Accounting, Auditing & Finance, 20(2), 95-119.
14. Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37.
15. Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511-529.
16. Brüggemann, U., Hitz, J. M., & Sellhorn, T. (2013). Intended and unintended consequences of mandatory IFRS adoption: A review of extant evidence and suggestions for future research. European Accounting Review, 22(1), 1-37.
17. Capkun, V., & Collins, D. W. (2018). The effects of IFRS adoption on observed earnings smoothness properties: the confounding effects of changes in timely gain and loss recognition. European Accounting Review, 27(5), 797-815.
18. Capkun, V., Collins, D., & Jeanjean, T. (2016). The effect of IAS/IFRS adoption on earnings management (smoothing): A closer look at competing explanations. Journal of Accounting and Public Policy, 35(4), 352-394.
19. Chen, H., Tang, Q., Jiang, Y., & Lin, Z. (2010). The role of international financial reporting standards in accounting quality: Evidence from the European Union. Journal of International Financial Management & Accounting, 21(3), 220-278.
20. Cho, K., Kwon, K. M., Yi, H., & Yun, Y. (2015). The Effect of International Financial Reporting Standards Adoption on the Relation Between Earnings Quality and Information Asymmetry in Korea. Emerging Markets Finance and Trade, 51(sup3), 95-117.
21. Christensen, H. B., Lee, E., & Walker, M. (2007). Cross-sectional variation in the economic consequences of international accounting harmonization: The case of mandatory IFRS adoption in the UK. The International Journal of Accounting, 42(4), 341-379.
22. Christensen, H. B., Lee, E., Walker, M., & Zeng, C. (2015). Incentives or standards: What determines accounting quality changes around IFRS adoption? European Accounting Review, 24(1), 31-61.
23. Chua, Y. L., Cheong, C. S., & Gould, G. (2012). The impact of mandatory IFRS adoption on accounting quality: Evidence from Australia. Journal of International Accounting Research, 11(1), 119-146.
24. Cutillas-Gomariz, M. F., Sánchez-Ballesta, J. P., & Yagüe, J. (2016). The effects of IFRS on net income and earnings components: value relevance, persistence, and predictive value. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 45(3), 365-388.
25. Daas, A. (2012). The Impact of IAS vs. IFRS (Voluntary) and IFRS (Voluntary) vs. IFRS (Mandatory) on Accounting Quality over Time: Inferences from Jordan. European Journal of Business and Management, 6(22),194-208.
26. Daske, H. (2006). Economic Benefits of Adopting IFRS or US‐GAAP–Have the Expected Cost of Equity Capital Really Decreased? Journal of Business Finance& Accounting, 33(3‐4), 329-373.
27. Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics, 18(1), 3-42.
28. Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77(s-1), 35-59.
29. Dechow, P. M., & Ge, W. (2006). The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly. Review of Accounting Studies, 11(2-3), 253-296.
30. Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2), 344-401.
31. Devalle, A., Onali, E., & Magarini, R. (2010). Assessing the value relevance of accounting data after the introduction of IFRS in Europe. Journal 0f International Financial Management & Accounting, 21(2), 85-119.
32. Doukakis, L. C. (2010). The persistence of earnings and earnings components after the adoption of IFRS. Managerial Finance, 36(11), 969-980.
33. Easton, P. D., & Harris, T. S. (1991). Earnings as an explanatory variable for returns. Journal of Accounting Research, 19-36.
34. El-Gazzar, S. M., & El-Sadek, Z. M. (2001). The value relevance of accounting information in thin and emerging capital markets: The case of Egypt's equity market. International Advances in Economic Research, 7(3), 368-368.
35. Ernstberger, J., Stich, M., & Vogler, O. (2012). Economic consequences of accounting enforcement reforms: the case of Germany. European Accounting Review, 21(2), 217-251.
36. Ewert, R., & Wagenhofer, A. (2010). Earnings quality metrics and what they measure. Working Paper, University of Graz.
37. Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2004). Costs of equity and earnings attributes. The Accounting Review, 79(4), 967-1010.
38. Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance? Journal of Accounting Research, 37(2), 319-352.
39. Gaio, C. (2010). The relative importance of firm and country characteristics for earnings quality around the world. European Accounting Review, 19(4), 693-738.
40. Gassen, J., Uwe Fülbier, R., & Sellhorn, T. (2006). International differences in conditional conservatism-The role of unconditional conservatism and income smoothing. European Accounting Review, 15(4), 527-564.
41. Gordon, E., B. Jorgensen, and C. Linthicum. 2010. Could IFRS replace U.S. GAAP? A comparison of earnings attributes and informativeness in the U.S. market. Working paper. Available at http://www.insead.edu/facultyresearch/areas/accounting/events/documents/CouldIFRSReplaceUSGAAP-JORGENSEN.pdf
42. Hausman, J. A. (1978). Specification tests in econometrics. Econometrica: Journal of The Econometric Society, 1251-1271.
43. Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. Stata Journal, 7(3), 281.
44. Horton, J., & Serafeim, G. (2010). Market reaction to and valuation of IFRS reconciliation adjustments: first evidence from the UK. Review of Accounting Studies, 15(4), 725-751.
45. Hung, M., & Subramanyam, K. R. (2007). Financial statement effects of adopting international accounting standards: the case of Germany. Review of Accounting Studies, 12(4), 623-657.
46. IASB (2009). IFRS Official pronouncements as issued at 1 January 2009. London: IASB.
47. IASB (2010). A Guide through International Financial Reporting Standards as issued at1 July 2010. London: IFRS Foundation Publications Department.
48. Kabir, M. H., Laswad, F., & Islam, M. A. (2010). Impact of IFRS in New Zealand on accounts and earnings quality. Australian Accounting Review, 20 (4), 343-357.
49. Khanagha, J. B. (2013) Accounting Reforms: Evidence from Middle Eastern Countries. International Journal of Management and Humanity Sciences, 2 (4), 250-258.
50. Karampinis, N., & Hevas, D. (2009). The effect of the mandatory application of IFRS on the value relevance of accounting data: Some evidence from Greece. European Research Studies, 12(1), 73-87.
51. Landsman, W. R., Maydew, E. L., & Thornock, J. R. (2012). The information content of annual earnings announcements and mandatory adoption of IFRS. Journal of Accounting and Economics, 53(1), 34-54.
52. Lang, M., Raedy, J. S., & Yetman, M. H. (2003). How representative are firms that are cross‐listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41(2), 363-386.
53. Lang, M., Raedy, J. S., & Wilson, W. (2006). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting and Economics, 42(1), 255-283.
54. Leuz, C. (2003). IAS versus US GAAP: information asymmetry–based evidence from Germany's new market. Journal of Accounting Research, 41(3), 445-472.
55. Lin, S., Riccardi, W., & Wang, C. (2012). Does accounting quality change following a switch from US GAAP to IFRS? Evidence from Germany. Journal of Accounting and Public Policy, 31(6), 641-657.
56. Liu, C., L. J. Yao, N. Hu, and L. Liu. 2011. The impact of IFRS on accounting quality in a regulated market: An empirical study of China. Journal of Accounting, Auditing, and Finance, 26 (4), 65-76.
57. Loftus, J. A., & Sin, S. (1997). The role of current and non‐current accruals in the relation between stock returns and earnings. Accounting & Finance, 37(2), 147-161.
58. Márquez-Ramos, L. (2011). European accounting harmonization: Consequences of IFRS adoption on trade in goods and foreign direct investments. Emerging Markets Finance and Trade, 47(sup4), 42-57.
59. Ohlson, J. A. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661-687.
60. Paananen, M., & Lin, H. (2009). The development of accounting quality of IAS and IFRS over time: The case of Germany. Journal of International Accounting Research, 8(1), 31-55.
61. Roberts, C. B., Weetman, P., & Gordon, P. (2005). International financial reporting: a comparative approach. Pearson Education.
62. Saaydah, M. (2012). IFRS and Accounting Information Quality: The Case of Jordan. Journal of Administrative and Economics Science, 5(2),55-73.
63. Scott, W. R. (2009). Financial accounting theory (fifth edition). Norwalk USA: Prentice Hall.Securities Depository Commission (2016). Retrieved from:http://www.sdc.com.jo/english/index.php?option=com_content&task=view&id=29&Itemid=62.
64. Sloan, R. (1996). Do stock prices fully reflect information in accruals and cash flows about future earnings? (Digest summary). Accounting Review,71(3), 289-315.
65. Soderstrom, N. S., & Sun, K. J. (2007). IFRS adoption and accounting quality: A review. European Accounting Review, 16(4), 675-702.
66. Street, D., and S. Gray. 2001. Observance of International Accounting Standards: Factors Explaining Non-Compliance. ACCA Research Report No. 74. London, U.K.: ACCA.
67. Sun, J., Cahan, S. F., & Emanuel, D. (2011). How would the mandatory adoption of IFRS affect the earnings quality of US firms? Evidence from cross-listed firms in the US. Accounting Horizons, 25(4), 837-860.
68. Van der Meulen, S., Gaeremynck, A., & Willekens, M. (2007). Attribute differences between US GAAP and IFRS earnings: An exploratory study. The International Journal of Accounting, 42(2), 123-142.
69. Van Tendeloo, B., & Vanstraelen, A. (2005). Earnings management under German GAAP versus IFRS. European Accounting Review, 14(1), 155-180.
70. Warfield, T. D., & Wild, J. J. (1992). Accounting recognition and the relevance of earnings as an explanatory variable for returns. The Accounting Review,67(4) 821- 842.
71. Warfield, T. D., Wild, J. J., & Wild, K. L. (1995). Managerial ownership, accounting choices, and informativeness of earnings. Journal of Accounting and Economics, 20(1), 61-91.
72. Watts, R., & Zimmerman, J. (1986). Positive Accounting Theory. Englewood Cliffs New Jersey: Prentice-Hall Inc.
73. Wooldridge, J. (2013). Introductory econometrics: A modern approach. Cengage Learning.
74. Zéghal, D., Chtourou, S., & Sellami, Y. M. (2011). An analysis of the effect of mandatory adoption of IAS/IFRS on earnings management. Journal of International Accounting, Auditing and Taxation, 20(2), 61-72.
75. Zeghal, D., Chtourou, S. M., & Fourati, Y. M. (2012). The effect of mandatory adoption of IFRS on earnings quality: Evidence from the European Union. Journal of International Accounting Research, 11(2), 1-25.
1. Abu Risheh, K. E., & Al-Saeed, M. T. A. (2014). The impact of IFRS adoption on audit fees: Evidence from Jordan. Accounting & Management Information Systems/ Contabilitate si Informatica de Gestiune, 13(3), 35-54.
2. Aharony, J., R. Barniv, and H. Falk. (2010). The impact of mandatory IFRS adoption on equity valuation of accounting numbers for security investors in the EU. The European Accounting Review, 19 (3), 535-578.
3. Ahmed, A. S., Neel, M., & Wang, D. (2013). Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence. Contemporary Accounting Research, 30(4), 1344-1372.
4. Al-Khadash, H. A., & Abdullatif, M. (2010). Consequences of Fair Value Accounting for Financial Instruments in the Developing Countries: The Case of the Banking Sector in Jordan. Jordan journal of business administration,5(4), 92-104.
5. Al, A. S. S., & Abulaila, M. D. (2016) The impact of IFRS application on asymmetry accounting information and quality of earnings. European Journal of Accounting, Auditing and Finance Research, 4(7), 51- 83
6. Atwood, T. J., Drake, M. S., Myers, J. N., & Myers, L. A. (2011). Do earnings reported under IFRS tell us more about future earnings and cash flows? Journal of Accounting and Public Policy, 30(2), 103-121.
7. Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting znd Business Research, 36(sup1), 5-27.
8. Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 159-178.
9. Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: Comparative loss recognition timeliness. Journal of Accounting and Economics, 39(1), 83-128.
10. Ball, R., & Shivakumar, L. (2006). The role of accruals in asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(2), 207-242.
11. Ball, R., Robin, A., & Wu, J. S. (2003). Incentives versus standards: properties of accounting income in four East Asian countries. Journal 0f Accounting and Economics, 36(1), 235-270.
12. Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467-498.
13. Bartov, E., Goldberg, S. R., & Kim, M. (2005). Comparative value relevance among German, US, and international accounting standards: A German stock market perspective. Journal of Accounting, Auditing & Finance, 20(2), 95-119.
14. Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37.
15. Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511-529.
16. Brüggemann, U., Hitz, J. M., & Sellhorn, T. (2013). Intended and unintended consequences of mandatory IFRS adoption: A review of extant evidence and suggestions for future research. European Accounting Review, 22(1), 1-37.
17. Capkun, V., & Collins, D. W. (2018). The effects of IFRS adoption on observed earnings smoothness properties: the confounding effects of changes in timely gain and loss recognition. European Accounting Review, 27(5), 797-815.
18. Capkun, V., Collins, D., & Jeanjean, T. (2016). The effect of IAS/IFRS adoption on earnings management (smoothing): A closer look at competing explanations. Journal of Accounting and Public Policy, 35(4), 352-394.
19. Chen, H., Tang, Q., Jiang, Y., & Lin, Z. (2010). The role of international financial reporting standards in accounting quality: Evidence from the European Union. Journal of International Financial Management & Accounting, 21(3), 220-278.
20. Cho, K., Kwon, K. M., Yi, H., & Yun, Y. (2015). The Effect of International Financial Reporting Standards Adoption on the Relation Between Earnings Quality and Information Asymmetry in Korea. Emerging Markets Finance and Trade, 51(sup3), 95-117.
21. Christensen, H. B., Lee, E., & Walker, M. (2007). Cross-sectional variation in the economic consequences of international accounting harmonization: The case of mandatory IFRS adoption in the UK. The International Journal of Accounting, 42(4), 341-379.
22. Christensen, H. B., Lee, E., Walker, M., & Zeng, C. (2015). Incentives or standards: What determines accounting quality changes around IFRS adoption? European Accounting Review, 24(1), 31-61.
23. Chua, Y. L., Cheong, C. S., & Gould, G. (2012). The impact of mandatory IFRS adoption on accounting quality: Evidence from Australia. Journal of International Accounting Research, 11(1), 119-146.
24. Cutillas-Gomariz, M. F., Sánchez-Ballesta, J. P., & Yagüe, J. (2016). The effects of IFRS on net income and earnings components: value relevance, persistence, and predictive value. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 45(3), 365-388.
25. Daas, A. (2012). The Impact of IAS vs. IFRS (Voluntary) and IFRS (Voluntary) vs. IFRS (Mandatory) on Accounting Quality over Time: Inferences from Jordan. European Journal of Business and Management, 6(22),194-208.
26. Daske, H. (2006). Economic Benefits of Adopting IFRS or US‐GAAP–Have the Expected Cost of Equity Capital Really Decreased? Journal of Business Finance& Accounting, 33(3‐4), 329-373.
27. Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics, 18(1), 3-42.
28. Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77(s-1), 35-59.
29. Dechow, P. M., & Ge, W. (2006). The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly. Review of Accounting Studies, 11(2-3), 253-296.
30. Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2), 344-401.
31. Devalle, A., Onali, E., & Magarini, R. (2010). Assessing the value relevance of accounting data after the introduction of IFRS in Europe. Journal 0f International Financial Management & Accounting, 21(2), 85-119.
32. Doukakis, L. C. (2010). The persistence of earnings and earnings components after the adoption of IFRS. Managerial Finance, 36(11), 969-980.
33. Easton, P. D., & Harris, T. S. (1991). Earnings as an explanatory variable for returns. Journal of Accounting Research, 19-36.
34. El-Gazzar, S. M., & El-Sadek, Z. M. (2001). The value relevance of accounting information in thin and emerging capital markets: The case of Egypt's equity market. International Advances in Economic Research, 7(3), 368-368.
35. Ernstberger, J., Stich, M., & Vogler, O. (2012). Economic consequences of accounting enforcement reforms: the case of Germany. European Accounting Review, 21(2), 217-251.
36. Ewert, R., & Wagenhofer, A. (2010). Earnings quality metrics and what they measure. Working Paper, University of Graz.
37. Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2004). Costs of equity and earnings attributes. The Accounting Review, 79(4), 967-1010.
38. Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance? Journal of Accounting Research, 37(2), 319-352.
39. Gaio, C. (2010). The relative importance of firm and country characteristics for earnings quality around the world. European Accounting Review, 19(4), 693-738.
40. Gassen, J., Uwe Fülbier, R., & Sellhorn, T. (2006). International differences in conditional conservatism-The role of unconditional conservatism and income smoothing. European Accounting Review, 15(4), 527-564.
41. Gordon, E., B. Jorgensen, and C. Linthicum. 2010. Could IFRS replace U.S. GAAP? A comparison of earnings attributes and informativeness in the U.S. market. Working paper. Available at http://www.insead.edu/facultyresearch/areas/accounting/events/documents/CouldIFRSReplaceUSGAAP-JORGENSEN.pdf
42. Hausman, J. A. (1978). Specification tests in econometrics. Econometrica: Journal of The Econometric Society, 1251-1271.
43. Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. Stata Journal, 7(3), 281.
44. Horton, J., & Serafeim, G. (2010). Market reaction to and valuation of IFRS reconciliation adjustments: first evidence from the UK. Review of Accounting Studies, 15(4), 725-751.
45. Hung, M., & Subramanyam, K. R. (2007). Financial statement effects of adopting international accounting standards: the case of Germany. Review of Accounting Studies, 12(4), 623-657.
46. IASB (2009). IFRS Official pronouncements as issued at 1 January 2009. London: IASB.
47. IASB (2010). A Guide through International Financial Reporting Standards as issued at1 July 2010. London: IFRS Foundation Publications Department.
48. Kabir, M. H., Laswad, F., & Islam, M. A. (2010). Impact of IFRS in New Zealand on accounts and earnings quality. Australian Accounting Review, 20 (4), 343-357.
49. Khanagha, J. B. (2013) Accounting Reforms: Evidence from Middle Eastern Countries. International Journal of Management and Humanity Sciences, 2 (4), 250-258.
50. Karampinis, N., & Hevas, D. (2009). The effect of the mandatory application of IFRS on the value relevance of accounting data: Some evidence from Greece. European Research Studies, 12(1), 73-87.
51. Landsman, W. R., Maydew, E. L., & Thornock, J. R. (2012). The information content of annual earnings announcements and mandatory adoption of IFRS. Journal of Accounting and Economics, 53(1), 34-54.
52. Lang, M., Raedy, J. S., & Yetman, M. H. (2003). How representative are firms that are cross‐listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41(2), 363-386.
53. Lang, M., Raedy, J. S., & Wilson, W. (2006). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting and Economics, 42(1), 255-283.
54. Leuz, C. (2003). IAS versus US GAAP: information asymmetry–based evidence from Germany's new market. Journal of Accounting Research, 41(3), 445-472.
55. Lin, S., Riccardi, W., & Wang, C. (2012). Does accounting quality change following a switch from US GAAP to IFRS? Evidence from Germany. Journal of Accounting and Public Policy, 31(6), 641-657.
56. Liu, C., L. J. Yao, N. Hu, and L. Liu. 2011. The impact of IFRS on accounting quality in a regulated market: An empirical study of China. Journal of Accounting, Auditing, and Finance, 26 (4), 65-76.
57. Loftus, J. A., & Sin, S. (1997). The role of current and non‐current accruals in the relation between stock returns and earnings. Accounting & Finance, 37(2), 147-161.
58. Márquez-Ramos, L. (2011). European accounting harmonization: Consequences of IFRS adoption on trade in goods and foreign direct investments. Emerging Markets Finance and Trade, 47(sup4), 42-57.
59. Ohlson, J. A. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661-687.
60. Paananen, M., & Lin, H. (2009). The development of accounting quality of IAS and IFRS over time: The case of Germany. Journal of International Accounting Research, 8(1), 31-55.
61. Roberts, C. B., Weetman, P., & Gordon, P. (2005). International financial reporting: a comparative approach. Pearson Education.
62. Saaydah, M. (2012). IFRS and Accounting Information Quality: The Case of Jordan. Journal of Administrative and Economics Science, 5(2),55-73.
63. Scott, W. R. (2009). Financial accounting theory (fifth edition). Norwalk USA: Prentice Hall.Securities Depository Commission (2016). Retrieved from:http://www.sdc.com.jo/english/index.php?option=com_content&task=view&id=29&Itemid=62.
64. Sloan, R. (1996). Do stock prices fully reflect information in accruals and cash flows about future earnings? (Digest summary). Accounting Review,71(3), 289-315.
65. Soderstrom, N. S., & Sun, K. J. (2007). IFRS adoption and accounting quality: A review. European Accounting Review, 16(4), 675-702.
66. Street, D., and S. Gray. 2001. Observance of International Accounting Standards: Factors Explaining Non-Compliance. ACCA Research Report No. 74. London, U.K.: ACCA.
67. Sun, J., Cahan, S. F., & Emanuel, D. (2011). How would the mandatory adoption of IFRS affect the earnings quality of US firms? Evidence from cross-listed firms in the US. Accounting Horizons, 25(4), 837-860.
68. Van der Meulen, S., Gaeremynck, A., & Willekens, M. (2007). Attribute differences between US GAAP and IFRS earnings: An exploratory study. The International Journal of Accounting, 42(2), 123-142.
69. Van Tendeloo, B., & Vanstraelen, A. (2005). Earnings management under German GAAP versus IFRS. European Accounting Review, 14(1), 155-180.
70. Warfield, T. D., & Wild, J. J. (1992). Accounting recognition and the relevance of earnings as an explanatory variable for returns. The Accounting Review,67(4) 821- 842.
71. Warfield, T. D., Wild, J. J., & Wild, K. L. (1995). Managerial ownership, accounting choices, and informativeness of earnings. Journal of Accounting and Economics, 20(1), 61-91.
72. Watts, R., & Zimmerman, J. (1986). Positive Accounting Theory. Englewood Cliffs New Jersey: Prentice-Hall Inc.
73. Wooldridge, J. (2013). Introductory econometrics: A modern approach. Cengage Learning.
74. Zéghal, D., Chtourou, S., & Sellami, Y. M. (2011). An analysis of the effect of mandatory adoption of IAS/IFRS on earnings management. Journal of International Accounting, Auditing and Taxation, 20(2), 61-72.
75. Zeghal, D., Chtourou, S. M., & Fourati, Y. M. (2012). The effect of mandatory adoption of IFRS on earnings quality: Evidence from the European Union. Journal of International Accounting Research, 11(2), 1-25.
Authors
[1]
“The Effects of Mandatory IFRS Adoption on Accounting Information Quality: Empirical Evidence from Jordan”, Soc. sci. humanities j., vol. 3, no. 07, pp. 1395–1415, Jul. 2019, Accessed: May 03, 2024. [Online]. Available: https://sshjournal.com/index.php/sshj/article/view/415
Copyright and license info is not available