The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]

This paper examines the impact of the application of International Financial Reporting Standards (IFRS) on accounting quality (financial report quality) of Latin American and Caribbean economies, regarding to their local accounting regulatory standards (Local GAAP). By using a sample of listed compa...

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Fecha de publicación:: 2019

Institución:: Universidad de Medellín

Repositorio:: Repositorio UDEM

Idioma:: spa

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network_acronym_str	REPOUDEM2
network_name_str	Repositorio UDEM
repository_id_str
dc.title.none.fl_str_mv	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
title	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
spellingShingle	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe] Accounting quality Earnings management Earnings smoothing IFRS adoption Value relevance
title_short	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
title_full	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
title_fullStr	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
title_full_unstemmed	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
title_sort	The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]
dc.subject.spa.fl_str_mv	Accounting quality Earnings management Earnings smoothing IFRS adoption Value relevance
topic	Accounting quality Earnings management Earnings smoothing IFRS adoption Value relevance
description	This paper examines the impact of the application of International Financial Reporting Standards (IFRS) on accounting quality (financial report quality) of Latin American and Caribbean economies, regarding to their local accounting regulatory standards (Local GAAP). By using a sample of listed companies in Latin America and the Caribbean from 2006 to 2016, accounting quality is assessed under three measurement criteria: earnings management, timely loss recognition (accounting attributes) and value relevance (market attributes). The findings suggest a partial accounting quality improvement; it is showed through a decrease on the level of earnings management only after several years of the IFRS application. However, there is no evidence of a greater opportunity to recognize large losses; furthermore, the generated accounting information under IFRS is not valued, with greater usefulness by market agents. © 2019 Universidad Nacional Autonoma de Mexico. All rights reserved.
publishDate	2019
dc.date.accessioned.none.fl_str_mv	2021-02-05T14:59:45Z
dc.date.available.none.fl_str_mv	2021-02-05T14:59:45Z
dc.date.none.fl_str_mv	2019
dc.type.eng.fl_str_mv	Article
dc.type.coarversion.fl_str_mv	http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.coar.fl_str_mv	http://purl.org/coar/resource_type/c_6501 http://purl.org/coar/resource_type/c_2df8fbb1
dc.type.driver.none.fl_str_mv	info:eu-repo/semantics/article
dc.identifier.issn.none.fl_str_mv	1861042
dc.identifier.uri.none.fl_str_mv	http://hdl.handle.net/11407/6111
dc.identifier.doi.none.fl_str_mv	10.22201/FCA.24488410E.2018.1669
identifier_str_mv	1861042 10.22201/FCA.24488410E.2018.1669
url	http://hdl.handle.net/11407/6111
dc.language.iso.none.fl_str_mv	spa
language	spa
dc.relation.isversionof.none.fl_str_mv	https://www.scopus.com/inward/record.uri?eid=2-s2.0-85085321971&doi=10.22201%2fFCA.24488410E.2018.1669&partnerID=40&md5=2fdff69990c141d9be60596e789243ac
dc.relation.citationvolume.none.fl_str_mv	64
dc.relation.citationissue.none.fl_str_mv	4
dc.relation.references.none.fl_str_mv	Abdullah, W.R.W., Maruhun, E.N.S., Tarmizi, M.A., The adoption of IFRS and earnings management: Evidence from the construction industry in Malaysia (2017) Global Conference on Business and Economics Research, pp. 1-8. , https://econ.upm.edu.my/upload/dokumen/20171011154330051-_WAN_RAZALILA.pdf, Augustn.d, Disponible en: y Consultado: 15/08/2019 Ahmed, A.S., Neel, M., Wang, D., Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence (2013) Contemporary Accounting Research, 30 (4), pp. 1344-1372. , http://doi.org/10.1111/j.19113846.2012.01193.x Armstrong, C.S., Barth, M.E., Jagolinzer, A.D., Riedl, E.J., Market reaction to the adoption of IFRS in Europe (2010) The Accounting Review, 85 (1), pp. 31-61. , http://doi.org/10.2308/accr.2010.85.1.31 Aubert, F., Grudnitski, G., The impact and importance of mandatory adoption of international financial reporting standards in Europe (2011) Journal of International Financial Management & Accounting, 22 (1), pp. 1-26. , http://doi.org/10.1111/j.1467-646X.2010.01043.x Ball, R., Infrastructure requirements for an economically efficient system of public financial reporting and disclosure (2001) Brookings-Wharton Papers on Financial Services, 2001 (1), pp. 127-169. , http://doi.org/10.1353/pfs.2001.0002 Ball, R., Robin, A., Wu, J.S., Incentives versus standards: Properties of accounting income in four East Asian countries (2003) Journal of Accounting and Economics, 36 (1-3), pp. 235-270. , http://doi.org/10.1016/j.jacceco.2003.10.003 Ball, R., Shivakumar, L., Earnings quality in UK private firms: Comparative loss recognition timeliness (2005) Journal of Accounting and Economics, 39 (1), pp. 83-128. , http://doi.org/10.1016/j.jacceco.2004.04.001 Barth, M.E., Landsman, W.R., Lang, M.H., International accounting standards and accounting quality (2008) Journal of Accounting Research, 46 (3), pp. 467-498. , http://doi.org/10.1111/j.1475-679X.2008.00287.x Barth, M.E., Landsman, W., Lang, M., Williams, C., (2006) Accounting Quality: International Accounting Standards and US GAAP, pp. 1-46. , http://public.kenan-flagler.unc.edu/faculty/langm/bllw_0302.pdf, Manuscript, Stanford University. Disponible en: y Consultado: 15/08/2019 Bartov, E., Goldberg, S.R., Kim, M., Comparative value relevance among German, US, and international accounting standards: A German stock market perspective (2005) Journal of Accounting, Auditing & Finance, 20 (2), pp. 95-119. , https://doi.org/10.1177/0148558X0502000201 Basu, S., The conservatism principle and the asymmetric timeliness of earnings (1997) Journal of Accounting and Economics, 24 (1), pp. 3-37. , http://doi.org/10.1016/S0165-4101(97)00014-1 Brad, L., Dobre, F., Ţurlea, C., Braşoveanu, I.V., The impact of IFRS adoption in Romania upon the earnings management of the Bucharest stock exchange entities (2014) Procedia Economics and Finance, 15, pp. 871-876. , http://doi.org/10.1016/S2212-5671(14)00550-4 Burgstahler, D.C., Hail, L., Leuz, C., The importance of reporting incentives: Earnings management in European private and public firms (2006) The Accounting Review, 81 (5), pp. 983-1016. , http://doi.org/10.2308/accr.2006.81.5.983 Burgstahler, D., Dichev, I., Earnings management to avoid earnings decreases and losses (1997) Journal of Accounting and Economics, 24 (1), pp. 99-126. , http://doi.org/10.1016/S0165-4101(97)00017-7 Bushman, R.M., Piotroski, J.D., Smith, A.J., What determines corporate transparency? 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(2015) European Accounting Review, 24 (1), pp. 31-61. , http://doi.org/10.1080/09638180.2015.1009144 Chua, Y.L., Cheong, C.S., Gould, G., The impact of mandatory IFRS adoption on accounting quality: Evidence from Australia (2012) Journal of International Accounting Research, 11 (1), pp. 119-146. , http://doi.org/10.2308/jiar-10212 Conesa, I.M., Manzano, M.P., Sánchez, H.G., (2011) La Calidad Del Resultado Pre Y Post-Adaptación A Las IFRS En México Por El CINIF, , http://www.aeca1.org/pub/on_line/comunicaciones_aal2011/cd/54a.pdf, Disponible en y consultado: 15/08/2019 da Silva, J.P., Borges, T.J.G., de Souza Gonçalves, R., do Nascimento, D.V.R., Convergence to IFRS standard and smoothing results in electric power companies (2017) BASE-Revista De Administração E Contabilidade Da Unisinos, 14 (4), pp. 281-296. , http://doi.org/10.4013/base.2017.144.04 Devalle, A., Onali, E., Magarini, R., Assessing the value relevance of accounting data after the introduction of IFRS in Europe (2010) Journal of International Financial Management & Accounting, 21 (2), pp. 85-119. , http://doi.org/10.1111/j.1467-646X.2010.01037.x Dimitropoulos, P.E., Asteriou, D., Kousenidis, D., Leventis, S., The impact of IFRS on accounting quality: Evidence from Greece (2013) Advances in Accounting, 29 (1), pp. 108-123. , http://doi.org/10.1016/j.adiac.2013.03.004 Ebrahim, A., Earnings management and board activity: An additional evidence (2007) Review of Accounting and Finance, 6 (1), pp. 42-58. , http://doi.org/10.1108/14757700710725458 Ewert, R., Wagenhofer, A., Earnings quality metrics and what they measure (2011) SSRN Electronic Journal, pp. 1-62. , http://doi.org/10.2139/ssrn.1697042 Francis, J.R., Khurana, I.K., Pereira, R., The role of accounting and auditing in corporate governance and the development of financial markets around the world (2003) Asia-Pacific Journal of Accounting & Economics, 10 (1), pp. 1-30. , http://doi.org/10.1080/16081625.2003.10510613 Francis, J., Olsson, P., Schipper, K., Earnings quality (2008) Foundations and Trends® in Accounting, 1 (4), pp. 259-340. , http://doi.org/10.1561/1400000004 Fuad, Wijanarto, W.T., How mandatory IFRS adoption changes firms’ opportunistic behavior: Empirical evidences from the earnings management perspective (2017) Academy of Accounting and Financial Studies Journal, 21 (2), pp. 1-10. , https://www.abacademies.org/journals/month-august-year-2017-vol-21-issue2-journal-aafsj-past-issue.html, y Consultado: 15/08/2019 Günther, N., Gegenfurtner, B., Kaserer, C., Achleitner, A., International financial reporting standards and earnings quality: The myth of voluntary vs. Mandatory adoption (2009) CEFS Working Paper No. 2009-09, pp. 1-44. , http://doi.org/10.2139/ssrn.1413145 Hail, L., Leuz, C., Wysocki, P., Global accounting convergence and the potential adoption of IFRS by the US (Part I): Conceptual underpinnings and economic analysis (2010) Accounting Horizons, 24 (3), pp. 355-394. , http://doi.org/10.2308/acch.2010.24.3.355 Halabi, H., Yi, L., Mandatory IFRS adoption and earnings quality: The impact of country-specific factors (2015) European Financial Management Association 2015 Annual Meetings, , https://repository.hkbu.edu.hk/hkbu_staff_publication/4844/, y Consultado: 16/08/2019 Healy, P.M., Wahlen, J.M., A review of the earnings management literature and its implications for standard setting (1999) Accounting Horizons, 13 (4), pp. 365-383. , https://doi.org/10.2308/acch.1999.13.4.365 Hellstrom, K., The value relevance of financial accounting information in a transition economy: The case of the Czech Republic (2006) European Accounting Review, 15 (3), pp. 325-349. , http://doi.org/10.1080/09638180600916242 Houqe, M.N., van Zijl, T., Dunstan, K., Karim, A.W., The effect of IFRS adoption and investor protection on earnings quality around the world (2012) The International Journal of Accounting, 47 (3), pp. 333-355. , http://doi.org/10.1016/j.intacc.2012.07.003 Hove, M.R., The Anglo-American influence on international accounting standards: The case of the disclosure standards of the international accounting standards committee (1990) Research in Third World Accounting, 1, pp. 55-66. , R. 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Evidence from an emerging market (2009) Academy of Accounting and Financial Studies Journal, 13 (Special Issue), pp. 43-56. , https://www.abacademies.org/journals/month-march-year2009-vol-13-issue-1-journal-aafsj-past-issue.html, y Consultado: 15/08/2019
dc.rights.coar.fl_str_mv	http://purl.org/coar/access_right/c_16ec
rights_invalid_str_mv	http://purl.org/coar/access_right/c_16ec
dc.publisher.none.fl_str_mv	Universidad Nacional Autonoma de Mexico
dc.publisher.program.spa.fl_str_mv	Contaduría Pública
dc.publisher.faculty.spa.fl_str_mv	Facultad de Ciencias Económicas y Administrativas
publisher.none.fl_str_mv	Universidad Nacional Autonoma de Mexico
dc.source.none.fl_str_mv	Contaduria y Administracion
institution	Universidad de Medellín
repository.name.fl_str_mv	Repositorio Institucional Universidad de Medellin
repository.mail.fl_str_mv	repositorio@udem.edu.co
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spelling	20192021-02-05T14:59:45Z2021-02-05T14:59:45Z1861042http://hdl.handle.net/11407/611110.22201/FCA.24488410E.2018.1669This paper examines the impact of the application of International Financial Reporting Standards (IFRS) on accounting quality (financial report quality) of Latin American and Caribbean economies, regarding to their local accounting regulatory standards (Local GAAP). By using a sample of listed companies in Latin America and the Caribbean from 2006 to 2016, accounting quality is assessed under three measurement criteria: earnings management, timely loss recognition (accounting attributes) and value relevance (market attributes). The findings suggest a partial accounting quality improvement; it is showed through a decrease on the level of earnings management only after several years of the IFRS application. However, there is no evidence of a greater opportunity to recognize large losses; furthermore, the generated accounting information under IFRS is not valued, with greater usefulness by market agents. © 2019 Universidad Nacional Autonoma de Mexico. All rights reserved.spaUniversidad Nacional Autonoma de MexicoContaduría PúblicaFacultad de Ciencias Económicas y Administrativashttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85085321971&doi=10.22201%2fFCA.24488410E.2018.1669&partnerID=40&md5=2fdff69990c141d9be60596e789243ac644Abdullah, W.R.W., Maruhun, E.N.S., Tarmizi, M.A., The adoption of IFRS and earnings management: Evidence from the construction industry in Malaysia (2017) Global Conference on Business and Economics Research, pp. 1-8. , https://econ.upm.edu.my/upload/dokumen/20171011154330051-_WAN_RAZALILA.pdf, Augustn.d, Disponible en: y Consultado: 15/08/2019Ahmed, A.S., Neel, M., Wang, D., Does mandatory adoption of IFRS improve accounting quality? 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Evidence from an emerging market (2009) Academy of Accounting and Financial Studies Journal, 13 (Special Issue), pp. 43-56. , https://www.abacademies.org/journals/month-march-year2009-vol-13-issue-1-journal-aafsj-past-issue.html, y Consultado: 15/08/2019Contaduria y AdministracionAccounting qualityEarnings managementEarnings smoothingIFRS adoptionValue relevanceThe impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]Articleinfo:eu-repo/semantics/articlehttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_6501http://purl.org/coar/resource_type/c_2df8fbb1Cardona Montoya, J.C., Universidad de San Buenaventura, ColombiaGómez Sánchez, A.F., Universidad de San Buenaventura, ColombiaCano Morales, A.M., Universidad de Medellín, Colombiahttp://purl.org/coar/access_right/c_16ecCardona Montoya J.C.Gómez Sánchez A.F.Cano Morales A.M.11407/6111oai:repository.udem.edu.co:11407/61112021-02-05 09:59:45.492Repositorio Institucional Universidad de Medellinrepositorio@udem.edu.co

The impact of international financial reporting standards on accounting quality: Evidence from Latin America and the Caribbean [Impacto de los estándares internacionales de información financiera en la calidad contable: Evidencia desde Latinoamérica y el Caribe]

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