The effect of IFRS adoption on accrual-based and real earnings management: emerging markets' perspective

IF 3.2 Q1 BUSINESS, FINANCE
D. Viana, I. Lourenço, Edilson Paulo
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引用次数: 7

Abstract

PurposeThis study analyzes the effect of the mandatory adoption of the International Financial Reporting Standards (IFRS) on the level of both accruals-based (AEM) and real earnings management (REM) in a comprehensive sample of firms from emerging markets. It also analyzes whether this effect differs depending on the nature/extent of IFRS adoption (full versus modified).Design/methodology/approachSome previous studies predominantly made up of samples from developed countries suggest a substitution of AEM for REM in the post-IFRS period. The authors test whether this trade-off among the two earnings management strategies is also evident in emerging markets, based on a sample of 27,789 firm-year observations from 18 countries between 2000 and 2018.FindingsThe results suggest that IFRS adoption in emerging markets is associated with the replacement of REM by AEM, unlike previous overall evidence in developed countries where firms appear to do the opposite. The results also show that this replacement is lower in the emerging markets fully applying IFRS, when compared to those applying a modified version of these international standards.Practical implicationsPossibly due to the poor institutional environment of emerging markets, coupled with greater flexibility inherited of IFRS principles-based approach, the authors reiterate an imminent concern about IFRS encouraging substitution of REM for AEM in emerging countries, namely in those applying a modified version of IFRS.Originality/valueWhile the predominant IFRS literature in emerging markets remains focused on analyzing only single-country studies, promoting clearly mixed results, the authors enhance such discussion and foster this debate on a more international level by analyzing the joint effect of IFRS in 18 emerging markets and by comparing the effect of full and modified IFRS adoption.
采用《国际财务报告准则》对权责发生制和实际盈余管理的影响:新兴市场的视角
目的本研究分析了强制性采用国际财务报告准则(IFRS)对新兴市场企业综合样本中基于应计利润(AEM)和实际盈余管理(REM)水平的影响。它还分析了这种影响是否因采用《国际财务报告准则》的性质/程度而有所不同(完全采用与修改后的)。设计/方法/方法一些以前的研究主要由发达国家的样本组成,建议在《国际财务报告准则》后的时期用AEM代替REM。作者基于2000年至2018年间来自18个国家的27789个公司年度的观察样本,测试了两种盈余管理策略之间的这种权衡是否在新兴市场也很明显。结果表明,新兴市场采用IFRS与AEM取代REM有关,与发达国家以前的总体证据不同,在发达国家,企业似乎采取了相反的做法。结果还表明,与采用这些国际标准的修订版的新兴市场相比,完全采用《国际财务报告准则》的新兴市场的这一替代率较低。实际含义可能是由于新兴市场糟糕的制度环境,加上继承了《国际财务报告准则》基于原则的方法的更大灵活性,作者重申了对《国际财务报表准则》鼓励新兴国家用REM代替AEM的紧迫担忧,即那些应用《国际财务报告准则》修订版的国家。《国际财务报表准则》的起源/价值虽然新兴市场的主要文献仍然侧重于仅分析单一国家的研究,促进了明显的混合结果,作者通过分析《国际财务报告准则》在18个新兴市场的共同影响,并通过比较全面采用和修改后的《国际财务报表准则》的影响,加强了这种讨论,并在更国际的层面上推动了这场辩论。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
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