Mandatory IFRS adoption, investor protection and earnings management: A data analysis of Germany, France and Belgium listed companies
International Journal of Accounting & Information Management
ISSN: 1834-7649
Article publication date: 5 March 2018
Abstract
Purpose
The purpose of this paper is to examine the effect of investor protection on earnings management before and after IFRS adoption.
Design/methodology/approach
A sample of 106 companies listed on Germany, France and Belgium stock markets for the pre-IFRS (2000-2004) and post-IFRS (2006-2011) periods was used. This research is based on a comparative study between the pre- and the post-IFRS periods.
Findings
The results showed that investor protection better explains earnings management after the transition to IFRS. The findings revealed that international standards and investor protection are significant in jointly explaining earnings management for the second reporting period.
Originality/value
The study gives rise to a score that is considered as a proxy of investor protection that regroups several macroeconomic indexes.
Keywords
Citation
Kouki, A. (2018), "Mandatory IFRS adoption, investor protection and earnings management: A data analysis of Germany, France and Belgium listed companies", International Journal of Accounting & Information Management, Vol. 26 No. 1, pp. 187-204. https://doi.org/10.1108/IJAIM-07-2017-0091
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited