Do globalisation and adoption of IFRS by banks in Africa lead to less earnings management?

Mohammed Amidu, Haruna Issahaku

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)

Abstract

Purpose: This paper aims to analyse the implications of globalisation and the adoption of international standards (International Financial Reporting Standards [IFRS]) for accounting information quality. Design/methodology/approach: This paper uses a sample of 329 banks across 29 countries leading up to and beyond the implementation of IFRS to test for related hypotheses. Findings: First, banks’ financial statements are prepared on the basis of international standards as national economies are integrated when social norms are diffused. Building on these results, the second test suggests that the relatively high-quality earnings among banks in Africa during the period is attributable to the adoption of and interaction of IFRS with globalisation and the strategy of banks to diversify within and across interest and non-interest income. Originality/value: The authors investigate how globalisation and the adoption of IFRS affect accounting information quality.

Original languageEnglish
Pages (from-to)222-248
Number of pages27
JournalJournal of Financial Reporting and Accounting
Volume17
Issue number2
DOIs
Publication statusPublished - 24 Jun 2019

Keywords

  • African banking systems
  • Earnings management
  • Globalization
  • IFRS

Fingerprint

Dive into the research topics of 'Do globalisation and adoption of IFRS by banks in Africa lead to less earnings management?'. Together they form a unique fingerprint.

Cite this