The Impact of Improvements in Institutional Oversight on IFRS Accrual Quality in Europe

What is it about?

Many countries around the world have adopted IFRS in order to improve the reporting quality. Given wide variations in the strength of IFRS enforcement mechanisms across the adopting countries, there are serious concerns that the reporting quality may not be improved uniformly after IFRS adoption without rigorous enforcement. Using a sample from European countries, we report that stronger enforcement mechanisms enhance the reporting quality in IFRS adopting countries in Europe.

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