Additional Evidence on the Impact of the International Financial Reporting Standards on Earnings Quality: Evidence from Latin America

Mauricio A. Melgarejo

Additional Evidence on the Impact of the International Financial Reporting Standards on Earnings Quality: Evidence from Latin America

Mauricio A. Melgarejo

Research output: Contribution to journal › Article › peer-review

Abstract

The purpose of this paper is to explore whether the adoption of the International Financial Reporting Standards (IFRS) has an impact on the quality of earnings in Latin America. Studying a sample offirms from Argentina, Brazil, Chile, Mexico, and Peru, I find that management reports a lower level of discretionary accruals after the implementation of the IFRS. In addition, this study provides evidence that earnings are more persistent and stock prices are more associated with earning numbers after the application of IFRS. This paper provides evidence that earnings quality has increased after the adoption of IFRS in Latin America.

Original language	American English
Journal	Journal of Applied Business and Economics
Volume	19
Issue number	7
State	Published - Oct 2017

Keywords

Earnings
Earnings management
Earnings per share
Economics
Emerging markets
Financial reporting
Financial statements
Hypotheses
International accounting standards
International finance
Investments
Loss recognition
Quality standards
Stock exchanges
Studies

Disciplines

Business
Accounting
Corporate Finance
Finance and Financial Management
International Business
Other Business

Access to Document

Melgarejo JABE 2017.pdfFinal published version, 619 KBLicense: Unspecified

Cite this

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title = "Additional Evidence on the Impact of the International Financial Reporting Standards on Earnings Quality: Evidence from Latin America",

abstract = " The purpose of this paper is to explore whether the adoption of the International Financial Reporting Standards (IFRS) has an impact on the quality of earnings in Latin America. Studying a sample offirms from Argentina, Brazil, Chile, Mexico, and Peru, I find that management reports a lower level of discretionary accruals after the implementation of the IFRS. In addition, this study provides evidence that earnings are more persistent and stock prices are more associated with earning numbers after the application of IFRS. This paper provides evidence that earnings quality has increased after the adoption of IFRS in Latin America. ",

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year = "2017",

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AB - The purpose of this paper is to explore whether the adoption of the International Financial Reporting Standards (IFRS) has an impact on the quality of earnings in Latin America. Studying a sample offirms from Argentina, Brazil, Chile, Mexico, and Peru, I find that management reports a lower level of discretionary accruals after the implementation of the IFRS. In addition, this study provides evidence that earnings are more persistent and stock prices are more associated with earning numbers after the application of IFRS. This paper provides evidence that earnings quality has increased after the adoption of IFRS in Latin America.

KW - Earnings

KW - Earnings management

KW - Earnings per share

KW - Economics

KW - Emerging markets

KW - Financial reporting

KW - Financial statements

KW - Hypotheses

KW - International accounting standards

KW - International finance

KW - Investments

KW - Loss recognition

KW - Quality standards

KW - Stock exchanges

KW - Studies

M3 - Article

SN - 1499-691X

VL - 19

JO - Journal of Applied Business and Economics

JF - Journal of Applied Business and Economics

IS - 7

ER -