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IFRS and accounting quality: Additional evidence from Korea

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  • Key, Kimberly G.
  • Kim, Jeong Youn

Abstract

This study investigates accounting quality in South Korea after the country transitioned in 2011 from domestic accounting standards to International Financial Reporting Standards (IFRS). Several variables of earnings management and timely loss recognition proxy for accounting quality. Reports of Korea’s IFRS adoption process indicate strong commitment to successful and transparent implementation, and we predict and find increased accounting quality after IFRS adoption. The results confirm and extend initial research showing that IFRS has had positive effects on Korea’s capital markets and its accounting environment.

Suggested Citation

  • Key, Kimberly G. & Kim, Jeong Youn, 2020. "IFRS and accounting quality: Additional evidence from Korea," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:jiaata:v:39:y:2020:i:c:s1061951820300070
    DOI: 10.1016/j.intaccaudtax.2020.100306
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    References listed on IDEAS

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    Cited by:

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    2. M N, Nikhil & Chakraborty, Suman & B M, Lithin & Lobo, Lumen Shawn, 2023. "Does the adoption of Ind AS affect the performance of firms in India?," MPRA Paper 117247, University Library of Munich, Germany, revised 18 Apr 2023.
    3. Bayar Gardi & Mehmet Aga & Nabaz Nawzad Abdullah, 2023. "Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS," Sustainability, MDPI, vol. 15(13), pages 1-19, June.
    4. Cho, Meeok & Kim, Sehee & Kim, Yewon & Lee, Bryan Byung-Hee & Lee, Woo-Jong, 2021. "IFRS adoption and stock misvaluation: Implication to Korea discount," Research in International Business and Finance, Elsevier, vol. 58(C).
    5. Michael Amoh Asiedu & Emmanuel Mensah, 2023. "Re-examining the corporate governance – Firm performance nexus: Fresh evidence from a causal mediation analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2223414-222, December.
    6. Georgakopoulos, Georgios & Gounopoulos, Dimitrios & Huang, Chen & Patsika, Victoria, 2022. "The impact of IFRS adoption on IPOs management earnings forecasts in Australia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 48(C).
    7. Lee, Woo Jae & Choi, Seung Uk, 2024. "The effect of the new revenue recognition principle (IFRS 15) on financial statement comparability: Evidence from Korea," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 54(C).
    8. Lee, Junyong & Oh, Frederick Dongchuhl, 2024. "Do foreign investors make firms more transparent? Evidence from Korea," Journal of Multinational Financial Management, Elsevier, vol. 74(C).
    9. Emmanuel Mensah & Joseph Kwadwo Tuffour & Mamdouh Abdulaziz Saleh Al-Faryan, 2023. "Does macroeconomic misery index matter in the micro firm-level earnings Management – performance nexus? Evidence from dynamic Panel threshold regression," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2289321-228, October.
    10. Ajit Dayanandan & Han Donker & Sudershan Kuntluru, 2024. "IFRS and ESG Disclosure in Indian Corporate Sector," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 23(2), pages 143-169, June.
    11. Aymen Abbadi & Yosra Hichri, 2024. "The Effect Of Ifrs Convergence In Mena Countries On The Audit Quality: Empirical Study In Mena Region [Impact De La Convergence Vers Les Normes Ifrs Sur La Qualité D'Audit : Etude Empirique Dans La," Post-Print hal-04696190, HAL.
    12. Nurunnabi, Mohammad & Donker, Han & Jermakowicz, Eva K., 2022. "The impact of mandatory adoption of IFRS in Saudi Arabia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 49(C).
    13. Daniela PORDEA & Alin-Constantin DUMITRESCU, 2021. "Convergence to IFRS in Romania – Score per Minute," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 19(162), pages 373-373, May.
    14. Emmanuel Mensah & Peter Ackah & Mamdouh Abdulaziz Saleh Al-Faryan, 2024. "Firms growth opportunities and accruals earnings management nexus: does corporate and national governance systems play a role?," SN Business & Economics, Springer, vol. 4(10), pages 1-41, October.

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    More about this item

    Keywords

    IFRS; Accounting quality; Korea;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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