Article
Additional Evidence on the Impact of the International Financial Reporting Standards on Earnings Quality: Evidence from Latin America
Journal of Applied Business and Economics
(2017)
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.
Keywords
- Loss recognition,
- Investments,
- Financial reporting,
- Economics,
- Earnings management,
- Hypotheses,
- Quality standards,
- Studies,
- Emerging markets,
- Financial statements,
- Earnings per share,
- International finance,
- Stock exchanges,
- International accounting standards,
- Earnings
Disciplines
Publication Date
October, 2017
Publisher Statement
This article was originally published in Journal of Applied Business and Economics ,2017 Volume 19, Issue 7: 49-59.
Citation Information
Mauricio A. Melgarejo. "Additional Evidence on the Impact of the International Financial Reporting Standards on Earnings Quality: Evidence from Latin America" Journal of Applied Business and Economics Vol. 19 Iss. 7 (2017) p. 49 - 59 ISSN: 1499691X Available at: http://works.bepress.com/mauricio-melgarejo/12/