IFRS adoption and financial reporting quality in the MENA region

What is it about?

This study aims to provide a deep understanding of the consequences of IFRS adoption/rejection decisions taken by MENA countries. This research uses various proxies to assess the accounting quality of the followed accounting regime. The study’s findings reveal that the overall sample of IFRS adopters in the MENA region have benefited from the adoption, as the results show that there is a reduction in earnings management for IFRS adopters in comparison to local standards adopters. The implications of this paper result in better-informed decisions for investors as the information contents of the annual reports enhance comparisons that facilitate the further flow of investments. This research also provides significant insight into the International Accounting Standards Board (IASB).

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