The role of board characteristics on the relationship between International Financial Reporting Standards (IFRS) adoption and earnings management: Evidence from China

Albitar, Khaldoon; Alqatan, Ahmad; Huang, Wei

doi:10.5897/jat2019.0357

Cited by 4 publications

(2 citation statements)

References 26 publications

(34 reference statements)

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“…For example, Tian et al (2023) deduced that the relationship between BC and IC quality is strengthened when ownership is more concentrated, indicating the vital role of ownership structure in enhancing the effect of BC on IC. Alqatan et al (2019) also observed positive effects of board size and independent director percentage on IC. Additionally, Gutiérrez (2019), Larrain and Urzúa (2015), and Pucheta-Martínez (2019) examined the linkage between OC and corporate governance in Latin America, revealing that higher levels of OC may lead to weaker governance and lower firm value.…”

Section: The Function Of Board Compensation (Bc): Agency Theory and S...mentioning

confidence: 73%

Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation

Ong,

Zhou,

Teh

et al. 2023

Environ Dev Sustain

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By promoting diversity in equity ownership concentration, strengthening female representation on boards, aligning pay with sustainability goals, and implementing strong internal control processes, companies can integrate sustainable practices into their operations, improve their sustainability performance, and attain long-term environmental and societal health. Therefore, this study examined the relationship between ownership concentration and internal control through the sustainability lens, specifically focusing on the moderating effects of female directors and board compensation. Data from a sample of 1609 A-share listed businesses in Shanghai and Shenzhen between 2012 and 2021 were analyzed. The findings from the fixed effects model revealed the following: ownership concentration negatively affects internal control; the number of female directors positively influences internal control; female directors actively moderate the relationship between ownership concentration and internal control; and board compensation enhances the effectiveness of internal control. These insights provide valuable data for businesses to enhance their internal control systems, appoint key personnel, and advance their sustainability goals. This study suggests that linking board characteristics to corporate internal control can lead to strengthened sustainable objectives. It also incentivizes directors to prioritize and integrate sustainability concerns in their decision-making. Furthermore, by ensuring that compensation reflects sustainability performance, firms can cultivate a sustainability-based culture and drive effective internal controls that support sustainable practices, ultimately contributing to long-term environmental and social well-being.

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Section: The Function Of Board Compensation (Bc): Agency Theory and S...mentioning

confidence: 73%

Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation

Ong,

Zhou,

Teh

et al. 2023

Environ Dev Sustain

View full text Add to dashboard Cite

show abstract

“…In a study conducted by Khaldoon et al (2019), the authors examined the impact of International Financial Reporting Standards (IFRS) adoption on earning management in China by taking into account the importance of board size and board independence. According to the empirical findings, earning management improved with the adoption of IFRS.…”

Section: Literature Review and Hypotheses Development Earnings Manage...mentioning

confidence: 99%

The Impact of COVID-19 Pandemic and IFRS Adoption on Earnings Quality: Malaysian Evidence

Abdullah¹,

Zamri²,

Fatzel³

et al. 2022

IJARAFMS

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The coronavirus (COVID-19) pandemic is regarded as the world's most serious health, economic, and social crisis. Therefore, managers play an important role in ensuring the survival of their business, and their discretion in financial reporting during a crisis becomes an interesting area to study. Meanwhile, the adoption of the International Financial Reporting Standard (IFRS) is anticipated to enhance the accuracy of earnings reported in financial statements. As a result, the objective of this study is to investigate the relationship between IFRS adoption and the impact of COVID-19 on earnings quality among Malaysian public listed companies. This study used two measures of earnings management: Accrual Earnings Management (AEM) and Real Earnings Management (REM). The sample of this study covers the period after the implementation of MFRS 111 for Construction companies in the year 2012 until the latest COVID-19 outbreak up to the year 2021. This study discovered that earnings management decreases after the adoption of IFRS, indicating that earnings management activities have been mitigated. However, the results also demonstrate that that earnings management figures are significant during the COVID-19 outbreak. Furthermore, the findings show that board composition and firm characteristics have an impact on firms' decisions to manage their earnings, whether on an accrual or real earnings management basis.

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IFRS 13 Convergence on Earnings Management of Listed Real Estate Companies in China

Shen,

Tan,

Lee

et al. 2024

Studies in Systems, Decision and Control

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The role of board characteristics on the relationship between International Financial Reporting Standards (IFRS) adoption and earnings management: Evidence from China

Cited by 4 publications

References 26 publications

Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation

Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation

The Impact of COVID-19 Pandemic and IFRS Adoption on Earnings Quality: Malaysian Evidence

IFRS 13 Convergence on Earnings Management of Listed Real Estate Companies in China

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