DOES MANDATORY IFRS ADOPTION IMPROVE FINANCIAL REPORTING QUALITY? EMPIRICAL EVIDENCE FROM AN EMERGING ECONOMY
Journal Title: European Journal of Business and Social Sciences - Year 2017, Vol 6, Issue 5
Abstract
This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) improves financial reporting quality in Turkey. To examine whether mandatorily adoption of IFRS improve financial reporting quality, I measure and compare financial reporting quality for listed Turkish firms before and after adopting IFRS. I use four indicators, namely, earnings smoothing, managing earnings toward targets, timely loss recognition and value relevance as proxies for financial reporting quality. I find that firms applying IFRS exhibit more likely to smooth earnings and manage earnings towards a target and engage in less timely recognition of losses but more value relevance, namely, a higher association of book value and earnings with share prices compared to firms applying Turkish GAAP. The findings of this study indicate that switching to IFRS does not improve financial reporting quality expect value relevance in Turkey.
Authors and Affiliations
Dr. Gulhan Suadiye| Mustafa Kemal University IIBF., Tayfur Sokmen Kampusu 31040, Hatay, TURKEY
Keywords
Related Articles
- EP ID EP10917
- DOI -
- Views 360
- Downloads 18
ROLE OF PROJECT RESOURCE AVAILABILITY ON PROJECT SUCCESS IN BANKING INDUSTRY IN RWANDA: A CASE OF KCB ATM MIS PROJECT
The Financial services sector in Rwanda has undergone transformation in the past years with several innovation driven improvements. Commercial banks in Rwanda and the rest of the world have continued to implore on sen...
RESOURCE MAINTENANCE FOR THE PROVISION OF EDUCATIONAL SERVICES IN PUBLIC AND PRIVATE SECONDARY SCHOOLS IN RIVERS STATE, NIGERIA
This study examines the influence of Resources maintenance on the provision of educational services in public and private secondary schools in Rivers State, Nigeria. To achieve the purpose of the...
FINANCIAL MANAGEMENT ASPECT ON SUSTAINABILITY OF COMMUNITY MANAGED WATER PROJECTS IN KIENI WEST DISTRICT, NYERI COUNTY, KENYA
Water is the most important natural resource, indispensable for life and at the same time the backbone of growth and prosperity for mankind. In the last decade, the provision of potable water for domestic and rural li...
REGULATION OF NON-AUDITING SERVICES: THE SPANISH CASE
The objective of this paper is to analyze through the positions of lecturers and auditors the legal aspects that regulate activities other than auditing of annual accounts, with the goal of providing relevant conclus...
EFFECT OF CULTURAL DIMENSIONS ON COHESIVENESSOF MULTI-NATIONAL PROJECT TEAMS IN RWANDA.A CASE OF BRALIRWA’S PET PROJECT
In the last 10 years, a number of Rwandan firms have been acquired by larger multinational firms at a higher rate, this brings a new reality: working in multi-cultural settings, this in turn brings another challenge, m...