The Impact of IFRS Adoption on Earnings Management-Results from Canada
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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

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asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 08 July 2019

The Impact of IFRS Adoption on Earnings Management-Results from Canada

Kousay Said

Lawrance Kinlen School of Business, Fanshawe College, Canada

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.02.03.107

Pages: 540-554

Keywords: Discretionary accruals (DACC), Earnings management (AM), Return on assets (ROA), Leverage (LEV), Delta earnings before interest, and taxes (∆EBIT).

Abstract

The purpose of this paper is to find out the impact of the adoption of IFRS on the practice of earnings management. It provides empirical results using panel data from 2000 to 2018 of the 19,869 firm-year observations of available data from 791 Canadian firms based on the Modified Jones model. The result of our study supports that there is the existence of earnings management practice. The overall result was negative but not significant suggesting adopting IFRS has no direct influence on earnings management used among publicly listed firms. In addition, this paper examined the influence of firm factors (independent variables) of leverage, return on assets, and enrings growth, the interaction variables of IFRS adoption on earnings management. Obtained results in this paper indicate the interaction variable of IFRS adoption is positively related with earnings management, but not significant, suggesting that adopting IFRS has no direct influence on earnings management used among publicly listed firms.

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