A Panel Examination of IFRS Adoption and Financial Statement Quality: Evidence from Selected Firms in Ghana

Amankwa, Richard Fosu; Mawutor, John Kwaku Mensah; Yiadom, Eric Boachie

doi:10.46281/ijafr.v5i2.768

Cited by 5 publications

(5 citation statements)

References 14 publications

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“…R Square = 0.253) 25% of the quality of financial reports; this result is supported by the significance of Tvalue which was 5.967 and F-value that scored to 35.600, which validates the model appropriateness and significance; this conclusion is also supports by the conclusions of Salehi and Torabi (2012). The impact for the availability of the computerized system infrastructure on quality of financial data (Hypothesis1-2) also was approved significant alike to (Kurfi, 2017;Amankwa et al, 2020); the availability of infrastructure as a single component explained about 26% (Adj. R Square = 0.254) for the change in quality and usefulness of the financial reports; Even though the present study was an exceptional in nature for our region and succeeded to accomplish its preset objectives, but every study has limitations.…”

Section: Resultsmentioning

confidence: 94%

“…Other researchers such as Selase and Selase (2019) emphasized that, the company's goals are hardly to be achieved with the absence for the essential fundamentals of information system that works harmonically together in order to provides high quality of financial data for decision-making, this perceived result confirmed by the conclusions of Salehi and Torabi (2012) that the accounting information system components such as competent of users and necessary computing infrastructure are vital to achieves the characteristics of financial data. Also another researchers (Kurfi, 2017;Amankwa et al, 2020) pointed out that accounting information system controls are the key success for reducing the misleading financial behaviors such as earnings management that practiced by many companies accountants, whether this earnings management with the intention for improving the company's position or for illegal purposes like beneficiaries to some parties, their papers results revealed also that, the competent and expertise of users in addition to a the proper infrastructure are capable to prevent and detect any practices for earnings management and thus prohibit manipulation and distortion of the financial figures published by companies about their income or financial position. Therefore, in order to verify the individual influence for each fundamental of accounting information system on robustness of financial reports the following two sub-hypotheses are formulated: H1-1: There is a positive significant impact for the availability of computerizing competences on knowledge robustness of financial reports.…”

Section: Related Studiesmentioning

confidence: 98%

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Cohesion of Accounting Information System Fundamentals and Knowledge Robustness in Financial Reporting

Aladwan¹,

Al-Adwan²

2023

J. Professional Business Review

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Purpose: This study aims to verify the impact for the solidity of accounting information system components on the knowledge robustness of accounting financial reports. the study anticipated to shed light and contribute to the ability of the interdependence, integration and homogeneity of the AIS components for providing financial reports enclose a useful knowledge for decision makers. Theoretical framework: The great development in the business environment and the need for complete, appropriate and transparent accounting knowledge and information to make various investment decisions, this need has become urgent to provide accurate and complete set of accounting reports through proficient accounting information systems. Design/methodology/approach: The study follows a quantitative research methodology by constructing a well-structured electronic questionnaire to survey 280 personnel from 70 Jordanian financial sector companies. The collected responses from sample then analyzed by arithmetic mean, simple and multiple regression to validate a set of predetermined hypotheses. Findings: The study results confirmed the availability for the six main elements of AIS in financial sector; knowledge robustness in financial reporting was also obtainable if AIS components are efficient The study also concluded that there is a single positive effect for each component of the accounting information system on the quality and coherence of financial reports. The results also affirmed the joint positive impact of all components of AIS on the knowledge robustness on financial reports. Research, Practical & Social implications: The study conveyed several contributions to AIS literature; it revealed that proper information system fundamentals supports the financial knowledge of decision makers to conduct decisions. performance enhancement can be accomplished strengthening the accounting information system. AIS increases the transparency and reliability of reported outcomes and thus reduces the future uncertainties and risks. The availability for complete set AIS fundamentals empower the communication level among company divisions and facilitate the accessibility for data necessary for work. Originality/value: The value of the study is stemed from its topic which is considered from the few topics that conducted on this area in our middle east region and particularly Jordan; moreover, this study deeply examines the accounting information system availability and its status from the viewpoints of many professionals.

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Section: Resultsmentioning

confidence: 94%

Section: Related Studiesmentioning

confidence: 98%

Cohesion of Accounting Information System Fundamentals and Knowledge Robustness in Financial Reporting

Aladwan¹,

Al-Adwan²

2023

J. Professional Business Review

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“…Using a Generalized Method of Moment, analysis indicates that there exists a negative relationship between IFRS adoption and earnings management. Amankwa, Mawutor, and Yiadom (2020) specifically study the influence of IFRS adoption on the quality of financial statements of some selected firms in Ghana. They use a panel regression model coupled with the extent of management practices to analyse their audited annual reports and financial statements quality respectively.…”

Section: Ifrs Adoption and Accounting Information Qualitymentioning

confidence: 99%

International Financial Reporting Standards, Board Governance and Accounting Quality: Preliminary Ghanaian Evidence

Oppong

Bruce-Amartey

2022

102

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IFRS adoption’s effect and board governance on accounting quality from Ghanaian perspective was examined using OLS technique between a seven-year periods (2013-2019). From the study, IFRS adoption negatively impacts accounting quality in an insignificant manner. The insignificant nexus was due to lax implementation of regulations by institutions with IFRS and incentive-performance tied schemes presented to managers. Additionally, all but profitability and institutional ownership have positively significant impact on accounting quality whilst board governance negatively affect accounting quality though not statistically significant. Finally, moderating the role of board governance on IFRS - accounting quality relation, evidence established from the regression is that board governance does not moderate relationship between IFRS adoption and accounting quality using discretionary accruals. Our study captured effective corporate governance practices using composite board governance index to moderate effect of IFRS on the nexus between board governance and accounting quality serving as central motivation to contribute to literature.

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“…But according to Janardhanan (2020), a firm's values have been depended on some specific features of a firm like size, age, liquidity of the firm, and also an internal controlling system of firms, etc. Moreover, to adopt IFRS, the country's financial system has to gain convergence and also decline earnings management practices to make quality reporting (Kurfi, 2017;Amankwa, Mawutor, & Yiadom, 2020). Imeokparia (2013) conducted a descriptive research" Information Technology and Financial Reporting by Deposit Money Bank in Nigeria: An Empirical Study" with a population size of 2,500 accountants and a sample size was taken as 345 from the population as primary data analyzed by simple regression model to examine the role of IT in the producing and publishing of financial reports of Deposit Money Banks in 2013 in Nigeria.…”

Section: Research Questionmentioning

confidence: 99%

The Role of Information Technology in Improvement of Quality of the Financial Reports Prepared by the Commercial Banks in Bangladesh

Sina¹,

Chowdhury

Sakib

et al. 2021

ijfb

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In the 21st century, from bank to insurance, multinational companies to government offices have increased thousands of times their profitability, productivity, sustainability, and also market expansion through the successful uses of ICT. Today another aspect is the preparation of a high-quality financial report that relies entirely on the information. Quality information depends on several characteristics like completeness, accuracy, timeliness, consistency, validity, accessibility, and integrity of that information, etc. Having these characteristics in financial information is the prerequisite for good financial reporting. Usages of IT have a great role in producing quality information and financial reporting consequently. The use of IT in the banking sector is more sophisticated than in other sectors in Bangladesh. Therefore, the purpose of this research is to examine analytically the relationship between the use of Information Technology and the quality of financial reporting. Using primary data sourced a structured questionnaire was administered to selected banks in Bangladesh and data analysis was done through the General Regression Model by OLS method to examine the nature of the relationship that exists between the quality of financial reports and the Adoption of Information Technology. The result of the data analysis of the study showed that a positive correlation exists between IT and the quality of reports. JEL Classification Codes: M1, M15, Q55.

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A Panel Examination of IFRS Adoption and Financial Statement Quality: Evidence from Selected Firms in Ghana

Cited by 5 publications

References 14 publications

Cohesion of Accounting Information System Fundamentals and Knowledge Robustness in Financial Reporting

Cohesion of Accounting Information System Fundamentals and Knowledge Robustness in Financial Reporting

International Financial Reporting Standards, Board Governance and Accounting Quality: Preliminary Ghanaian Evidence

The Role of Information Technology in Improvement of Quality of the Financial Reports Prepared by the Commercial Banks in Bangladesh

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