IFRS adoption and information quality: evidence from emerging market

The IASB was established in order to produce a single set of high quality, understandable and enforceable accounting standards, namely the IFRS. Most of the existing studies about the IFRS have largely focused on advanced countries adoption, while the present study fills a gap in the existing lite...

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Main Authors:	Seyed Sajad Ebrahimi Rad, Zaini Embong
Format:	Article
Language:	English
Published:	FEP 2014
Online Access:	http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/1/8755-23243-1-SM.pdf

id	ukm-8505
recordtype	eprints
spelling	ukm-85052016-12-14T06:47:22Z http://journalarticle.ukm.my/8505/ IFRS adoption and information quality: evidence from emerging market Seyed Sajad Ebrahimi Rad, Zaini Embong, The IASB was established in order to produce a single set of high quality, understandable and enforceable accounting standards, namely the IFRS. Most of the existing studies about the IFRS have largely focused on advanced countries adoption, while the present study fills a gap in the existing literature by studying the effect of IFRS adoption on information quality in an emerging market. A number of studies indicate that this new set of standards is primarily aimed at countries with highly developed capital market, and it can be questioned whether the resulting standards are optimal for developing and transitional economies. This study attempts to examine whether there is any significant association between IFRS adoption and market perspective of information quality, proxied by bid-ask spread. The sample comprises a balanced panel of 858 firm-year observations of listed firms under the Main Board of Bursa Malaysia. Results of the study shows that the implementation of IFRS generally reinforces information quality. Taken together, our results are consistent with the view that IFRS represent a vehicle through which countries can improve information quality and make their capital markets more efficient and accessible to investors. This is the first published study that investigates the impact of IFRS adoption on information quality of an emerging market. The nature of the information environment of capital market in Malaysia provides us with enough motivations to investigate the impacts of this new set of standards on information quality FEP 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8505/1/8755-23243-1-SM.pdf Seyed Sajad Ebrahimi Rad, and Zaini Embong, (2014) IFRS adoption and information quality: evidence from emerging market. Asian Journal of Accounting and Governance, 5 . pp. 37-45. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/563
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The IASB was established in order to produce a single set of high quality, understandable and enforceable accounting standards, namely the IFRS. Most of the existing studies about the IFRS have largely focused on advanced countries adoption, while the present study fills a gap in the existing literature by studying the effect of IFRS adoption on information quality in an emerging market. A number of studies indicate that this new set of standards is primarily aimed at countries with highly developed capital market, and it can be questioned whether the resulting standards are optimal for developing and transitional economies. This study attempts to examine whether there is any significant association between IFRS adoption and market perspective of information quality, proxied by bid-ask spread. The sample comprises a balanced panel of 858 firm-year observations of listed firms under the Main Board of Bursa Malaysia. Results of the study shows that the implementation of IFRS generally reinforces information quality. Taken together, our results are consistent with the view that IFRS represent a vehicle through which countries can improve information quality and make their capital markets more efficient and accessible to investors. This is the first published study that investigates the impact of IFRS adoption on information quality of an emerging market. The nature of the information environment of capital market in Malaysia provides us with enough motivations to investigate the impacts of this new set of standards on information quality
format	Article
author	Seyed Sajad Ebrahimi Rad, Zaini Embong,
spellingShingle	Seyed Sajad Ebrahimi Rad, Zaini Embong, IFRS adoption and information quality: evidence from emerging market
author_facet	Seyed Sajad Ebrahimi Rad, Zaini Embong,
author_sort	Seyed Sajad Ebrahimi Rad,
title	IFRS adoption and information quality: evidence from emerging market
title_short	IFRS adoption and information quality: evidence from emerging market
title_full	IFRS adoption and information quality: evidence from emerging market
title_fullStr	IFRS adoption and information quality: evidence from emerging market
title_full_unstemmed	IFRS adoption and information quality: evidence from emerging market
title_sort	ifrs adoption and information quality: evidence from emerging market
publisher	FEP
publishDate	2014
url	http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/ http://journalarticle.ukm.my/8505/1/8755-23243-1-SM.pdf
first_indexed	2023-09-18T19:52:28Z
last_indexed	2023-09-18T19:52:28Z
_version_	1777406310756646912

IFRS adoption and information quality: evidence from emerging market

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