Proceedings of the 6th International Accounting Conference (IAC 2017)

IFRS Adoption, Earnings Management and Investor Protection in Several Asian Countries

Authors
Fathiah Rahmaningtyas, Aria Farah Mita
Corresponding Author
Fathiah Rahmaningtyas
Available Online August 2017.
DOI
https://doi.org/10.2991/iac-17.2018.21How to use a DOI?
Keywords
IFRS Adoption; Earnings Management; Investor Protection
Abstract

This research aims to examine whether the adoption of IFRS decreases earnings management in companies from Asian countries. It also considers the impact of country-level investor protection on the adoption of IFRS that would affect earnings management. The Kothari, Leone and Wasley1 model is used to calculate discretionary accruals to measure earnings management. Unlike most of the previous research, the result shows that earnings management is higher after the adoption of IFRS than before IFRS was adopted. This increase in earnings management is probably due to IFRS adoption, which is still at an early stage. Principle-based IFRS characteristics provide a broader judgment area for management. Thus, in the transition period of IFRS adoption, management may use its discretion in preparing financial statements. However, the positive relation of IFRS with earnings management level is lower in countries with a strong investor protection.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th International Accounting Conference (IAC 2017)
Series
Advances in Economics, Business and Management Research
Publication Date
August 2017
ISBN
978-94-6252-519-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/iac-17.2018.21How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Fathiah Rahmaningtyas
AU  - Aria Farah Mita
PY  - 2017/08
DA  - 2017/08
TI  - IFRS Adoption, Earnings Management and Investor Protection in Several Asian Countries
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 118
EP  - 122
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.21
DO  - https://doi.org/10.2991/iac-17.2018.21
ID  - Rahmaningtyas2017/08
ER  -