Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10174/23518 https://doi.org/Morais, A., Fialho, A. e Dionísio A. (2018) “Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe”. Journal of Applied Accounting Research, 19, 3: 334-350 (doi.org/10.1108/JAAR-07-2016-0073) https://doi.org/10.1108/JAAR-07-2016-0073 |
Resumo: | Purpose The purpose of this paper is to provide empirical evidence regarding the classification of European countries based on accounting quality metrics. The authors investigate whether the grouping of countries based on accounting quality levels differs from other classifications based on accounting practices or country-specific factors identified in previous studies. Design/methodology/approach The authors run panel data regressions for 2.078 European listed companies using value relevance and earnings smoothing metrics. The authors also apply cluster analysis to classify the countries. Findings The results suggest that the adoption of a common set of International Financial Reporting Standards (IFRS) did not lead to a similar level of accounting quality of financial information. The authors identified three clusters of countries that are not coincident with previous classifications. Research limitations/implications The results show that the adoption of different accounting practices allowed in IFRS does not necessarily influence accounting quality. Practical implications The results suggest that the way regulators decided to incorporate IFRS into national accounting systems is one issue that may be relevant in explaining the three clusters. Originality/value The paper provides empirical evidence that supports two theoretical assertions. The first is that a classification depends entirely on the characteristics used to represent the countries being classified. The second is that the adoption of a single set of accounting standards does not determine similar accounting practices and does not lead to similar levels of accounting quality. |
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Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from EuropeIFRSValue relevanceEarnings smoothingAccounting qualityClassification of accounting systemsPurpose The purpose of this paper is to provide empirical evidence regarding the classification of European countries based on accounting quality metrics. The authors investigate whether the grouping of countries based on accounting quality levels differs from other classifications based on accounting practices or country-specific factors identified in previous studies. Design/methodology/approach The authors run panel data regressions for 2.078 European listed companies using value relevance and earnings smoothing metrics. The authors also apply cluster analysis to classify the countries. Findings The results suggest that the adoption of a common set of International Financial Reporting Standards (IFRS) did not lead to a similar level of accounting quality of financial information. The authors identified three clusters of countries that are not coincident with previous classifications. Research limitations/implications The results show that the adoption of different accounting practices allowed in IFRS does not necessarily influence accounting quality. Practical implications The results suggest that the way regulators decided to incorporate IFRS into national accounting systems is one issue that may be relevant in explaining the three clusters. Originality/value The paper provides empirical evidence that supports two theoretical assertions. The first is that a classification depends entirely on the characteristics used to represent the countries being classified. The second is that the adoption of a single set of accounting standards does not determine similar accounting practices and does not lead to similar levels of accounting quality.Emerald Insight2018-10-04T11:17:26Z2018-10-042018-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://hdl.handle.net/10174/23518https://doi.org/Morais, A., Fialho, A. e Dionísio A. (2018) “Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe”. Journal of Applied Accounting Research, 19, 3: 334-350 (doi.org/10.1108/JAAR-07-2016-0073)http://hdl.handle.net/10174/23518https://doi.org/10.1108/JAAR-07-2016-0073porhttps://www.emeraldinsight.com/doi/full/10.1108/JAAR-07-2016-0073anamorais@iseg.ulisboa.ptafialho@uevora.ptandreia@uevora.pt255Morais, AnaFialho, AnaDionisio, Andreiainfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-03T19:15:45Zoai:dspace.uevora.pt:10174/23518Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T01:14:22.262952Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
title |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
spellingShingle |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe Morais, Ana IFRS Value relevance Earnings smoothing Accounting quality Classification of accounting systems |
title_short |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
title_full |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
title_fullStr |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
title_full_unstemmed |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
title_sort |
Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe |
author |
Morais, Ana |
author_facet |
Morais, Ana Fialho, Ana Dionisio, Andreia |
author_role |
author |
author2 |
Fialho, Ana Dionisio, Andreia |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Morais, Ana Fialho, Ana Dionisio, Andreia |
dc.subject.por.fl_str_mv |
IFRS Value relevance Earnings smoothing Accounting quality Classification of accounting systems |
topic |
IFRS Value relevance Earnings smoothing Accounting quality Classification of accounting systems |
description |
Purpose The purpose of this paper is to provide empirical evidence regarding the classification of European countries based on accounting quality metrics. The authors investigate whether the grouping of countries based on accounting quality levels differs from other classifications based on accounting practices or country-specific factors identified in previous studies. Design/methodology/approach The authors run panel data regressions for 2.078 European listed companies using value relevance and earnings smoothing metrics. The authors also apply cluster analysis to classify the countries. Findings The results suggest that the adoption of a common set of International Financial Reporting Standards (IFRS) did not lead to a similar level of accounting quality of financial information. The authors identified three clusters of countries that are not coincident with previous classifications. Research limitations/implications The results show that the adoption of different accounting practices allowed in IFRS does not necessarily influence accounting quality. Practical implications The results suggest that the way regulators decided to incorporate IFRS into national accounting systems is one issue that may be relevant in explaining the three clusters. Originality/value The paper provides empirical evidence that supports two theoretical assertions. The first is that a classification depends entirely on the characteristics used to represent the countries being classified. The second is that the adoption of a single set of accounting standards does not determine similar accounting practices and does not lead to similar levels of accounting quality. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-10-04T11:17:26Z 2018-10-04 2018-01-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10174/23518 https://doi.org/Morais, A., Fialho, A. e Dionísio A. (2018) “Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe”. Journal of Applied Accounting Research, 19, 3: 334-350 (doi.org/10.1108/JAAR-07-2016-0073) http://hdl.handle.net/10174/23518 https://doi.org/10.1108/JAAR-07-2016-0073 |
url |
http://hdl.handle.net/10174/23518 https://doi.org/Morais, A., Fialho, A. e Dionísio A. (2018) “Is the accounting quality after the mandatory adoption of IFRS a random walk? Evidence from Europe”. Journal of Applied Accounting Research, 19, 3: 334-350 (doi.org/10.1108/JAAR-07-2016-0073) https://doi.org/10.1108/JAAR-07-2016-0073 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://www.emeraldinsight.com/doi/full/10.1108/JAAR-07-2016-0073 anamorais@iseg.ulisboa.pt afialho@uevora.pt andreia@uevora.pt 255 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Emerald Insight |
publisher.none.fl_str_mv |
Emerald Insight |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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