The role of the national institutional environment in IFRS convergence: a new approach
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 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.
3367-3406
Cao, June
af0d62ff-d54c-412f-a152-cc04c63c7290
Patel, Chris
481749c9-d019-4e9b-8df0-5303b2bb7312
14 December 2020
Cao, June
af0d62ff-d54c-412f-a152-cc04c63c7290
Patel, Chris
481749c9-d019-4e9b-8df0-5303b2bb7312
Cao, June and Patel, Chris
(2020)
The role of the national institutional environment in IFRS convergence: a new approach.
Accounting and Finance, 60 (4), .
(doi:10.1111/acfi.12525).
Abstract
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.
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Accounting Finance - 2019 - Cao - The role of the national institutional environment in IFRS convergence a new approach
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e-pub ahead of print date: 10 September 2019
Published date: 14 December 2020
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Local EPrints ID: 500770
URI: http://eprints.soton.ac.uk/id/eprint/500770
PURE UUID: b3aa0bd4-9f08-4d82-b7b0-020fcbfdaa11
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Date deposited: 13 May 2025 16:34
Last modified: 23 Oct 2025 02:27
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Author:
June Cao
Author:
Chris Patel
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