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Browsing by Author "Monem, Reza M."

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    Secrecy and Mandatory IFRS Adoption on Earnings Quality
    (Te Herenga Waka—Victoria University of Wellington, 2015) Houqe, Noor; Monem, Reza M.; Tareq, Mohammad; van Zijl, Tony
    This study examines the effect of mandatory IFRS adoption on earnings quality in countries which exhibit high financial secrecy. Earnings quality is proxied by signed abnormal accruals and earnings conservatism. Using 19,324 firm-years from 14 countries over the period 1998-2011, we find that firms in a high-secrecy country tend to report higher abnormal accruals and earnings conservatism, which results in lower earnings quality. On the other hand, we find that mandatory IFRS adoption improves earnings quality by decreasing abnormal accruals and earnings conservatism. Our study provides evidence of the interaction between national culture, as indicated by secrecy, and IFRS adoption and helps to explain differences in earnings quality across different jurisdictions following IFRS adoption.