TY - JOUR
T1 - IFRS adoption and firms’ opacity around the world:
T2 - What factors affect this relationship?
AU - Mongrut, Samuel
AU - Tello Marín, Manuel
AU - Torres Postigo, Maria del Carmen
AU - Fuenzalida O’Shee, Darcy
N1 - Publisher Copyright:
© 2021, Samuel Arturo Mongrut, Manuel Tello Marín, Maria del Carmen Torres Postigo and Darcy Fuenzalida O’Shee.
Funding Information:
The authors wish to acknowledge the support of the NOSC Independent Research Program (Dr. A. Gordon) and the NOSC STRAP Program (S.F. Sullivan). They also appreciate the helpful comments of Prof. J. R. Bunch of the University of California at San Diego.
Publisher Copyright:
© 2021, Samuel Arturo Mongrut, Manuel Tello Marín, Maria del Carmen Torres Postigo and Darcy Fuenzalida O’Shee.
Funding Information:
The authors wish to acknowledge the support of the NOSC Independent Research Program (Dr. A. Gordon) and the NOSC STRAP Program (S.F. Sullivan). They also appreciate the helpful comments of Prof. J. R. Bunch of the University of California at San Diego.
Publisher Copyright:
© 2021, Samuel Arturo Mongrut, Manuel Tello Marín, Maria del Carmen Torres Postigo and Darcy Fuenzalida O’Shee.
PY - 2021/7/13
Y1 - 2021/7/13
N2 - Purpose: This paper aims to identify what are the moderating factors affecting the relationship between firms’ adoption of international financial and reporting standards (IFRS) and the firm’s opacity.Design/methodology/approach: This study uses the meta-analysis methodology from Hunter et al. (1982) to find if the mere IFRS adoption reduces firm’s opacity and a meta-regression from Stanley and Jarrell (1989) to identify the moderating factors that may influence this relationship.Findings: Contrary to previous studies, this study finds a low, negative and nonsignificant correlation between IFRS adoption and firms’ opacity, but this relationship depends on the geographical region. Using 34 results from 28 studies from different continents published between 2005 and 2018 this study finds that IFRS adoption reduces opacity in countries with common law (COML) and with more authorities’ oversight and power to enforce the rules.Originality/value: This study finds two institutional commonalities between different previous studies that intend to assess the impact of the IFRS adoption upon firms’ opacity: the legal system and the authorities’ oversight power.
AB - Purpose: This paper aims to identify what are the moderating factors affecting the relationship between firms’ adoption of international financial and reporting standards (IFRS) and the firm’s opacity.Design/methodology/approach: This study uses the meta-analysis methodology from Hunter et al. (1982) to find if the mere IFRS adoption reduces firm’s opacity and a meta-regression from Stanley and Jarrell (1989) to identify the moderating factors that may influence this relationship.Findings: Contrary to previous studies, this study finds a low, negative and nonsignificant correlation between IFRS adoption and firms’ opacity, but this relationship depends on the geographical region. Using 34 results from 28 studies from different continents published between 2005 and 2018 this study finds that IFRS adoption reduces opacity in countries with common law (COML) and with more authorities’ oversight and power to enforce the rules.Originality/value: This study finds two institutional commonalities between different previous studies that intend to assess the impact of the IFRS adoption upon firms’ opacity: the legal system and the authorities’ oversight power.
KW - Earnings management
KW - IFRS
KW - Opacity
KW - Empresas--Contabilidad
KW - Contabilidad--Normas
UR - http://www.scopus.com/inward/record.url?scp=85108210924&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/1c4e466a-4773-342e-a560-d647e36c66fc/
U2 - 10.1108/JEFAS-02-2020-0060
DO - 10.1108/JEFAS-02-2020-0060
M3 - Artículo de revista
AN - SCOPUS:85108210924
SN - 2077-1886
VL - 26
SP - 7
EP - 21
JO - Journal of Economics, Finance and Administrative Science
JF - Journal of Economics, Finance and Administrative Science
IS - 51
ER -
