The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan

Earnings quality of Jordanian public listed firms needs significant improvement due to poor accounting practices and lack of internal governance mechanism, therefore regulators have taken initiative to implement IFRS. This study aims to examine whether earnings quality (value relevance, timely loss...

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Main Author:	Al-shyoukh, Fayis Mahmoud Rasheed
Format:	Thesis
Language:	eng eng eng
Published:	2020
Subjects:	HF5001-6182 Business
Online Access:	https://etd.uum.edu.my/9359/1/depositpermission_s95478.pdf https://etd.uum.edu.my/9359/2/s95478_01.pdf https://etd.uum.edu.my/9359/3/s95478_references.docx
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id	my-uum-etd.9359
record_format	uketd_dc
spelling	my-uum-etd.93592022-05-17T00:55:34Z The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan 2020 Al-shyoukh, Fayis Mahmoud Rasheed Abdul Manaf, Kamarul Bahrain Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HF5001-6182 Business Earnings quality of Jordanian public listed firms needs significant improvement due to poor accounting practices and lack of internal governance mechanism, therefore regulators have taken initiative to implement IFRS. This study aims to examine whether earnings quality (value relevance, timely loss recognition, earnings persistence, earnings management) has improved post-IFRS adoption in Jordan. It also aims to examine whether the effect of IFRS on earnings quality is moderated by family firms to address significant gap in literature. Data covering fifteen years 2001-2003 as pre-IFRS adoption and 2004-2015 as post-IFRS adoption were obtained from the annual reports of Jordanian listed industrial and service sector firms. Findings show that IFRS do not influence value relevance of book value of equity, whereas, the value relevance of earnings is higher after the IFRS adoption under return model only. Timely loss recognition is significantly lower, earnings persistence is significantly higher and earnings management is insignificantly lower after IFRS adoption. The family firms are not a moderator on effect of IFRS on value relevance of book value of equity, whereas, family firms are a moderator on effect of IFRS on value relevance of earnings based on the return model only. Family firms are a moderator on effect of IFRS on timely loss recognition and a moderator on effect of IFRS on earnings persistence. Finally, family firms are not a moderator on the effect of IFRS on earnings management. Overall, there are mixed findings regarding the impact of IFRS adoption and family firms on different measures of earnings quality pre and post-IFRS adoption periods. This study contributes to agency theory by claiming that risk of type 2 agency conflict is somehow lower in family firms after the IFRS adoption that trigger regulators to promote closely held firms to improve IFRS adoption and earnings quality. 2020 Thesis https://etd.uum.edu.my/9359/ https://etd.uum.edu.my/9359/1/depositpermission_s95478.pdf text eng staffonly https://etd.uum.edu.my/9359/2/s95478_01.pdf text eng public https://etd.uum.edu.my/9359/3/s95478_references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Abdul Manaf, Kamarul Bahrain
topic	HF5001-6182 Business
spellingShingle	HF5001-6182 Business Al-shyoukh, Fayis Mahmoud Rasheed The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan
description	Earnings quality of Jordanian public listed firms needs significant improvement due to poor accounting practices and lack of internal governance mechanism, therefore regulators have taken initiative to implement IFRS. This study aims to examine whether earnings quality (value relevance, timely loss recognition, earnings persistence, earnings management) has improved post-IFRS adoption in Jordan. It also aims to examine whether the effect of IFRS on earnings quality is moderated by family firms to address significant gap in literature. Data covering fifteen years 2001-2003 as pre-IFRS adoption and 2004-2015 as post-IFRS adoption were obtained from the annual reports of Jordanian listed industrial and service sector firms. Findings show that IFRS do not influence value relevance of book value of equity, whereas, the value relevance of earnings is higher after the IFRS adoption under return model only. Timely loss recognition is significantly lower, earnings persistence is significantly higher and earnings management is insignificantly lower after IFRS adoption. The family firms are not a moderator on effect of IFRS on value relevance of book value of equity, whereas, family firms are a moderator on effect of IFRS on value relevance of earnings based on the return model only. Family firms are a moderator on effect of IFRS on timely loss recognition and a moderator on effect of IFRS on earnings persistence. Finally, family firms are not a moderator on the effect of IFRS on earnings management. Overall, there are mixed findings regarding the impact of IFRS adoption and family firms on different measures of earnings quality pre and post-IFRS adoption periods. This study contributes to agency theory by claiming that risk of type 2 agency conflict is somehow lower in family firms after the IFRS adoption that trigger regulators to promote closely held firms to improve IFRS adoption and earnings quality.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Al-shyoukh, Fayis Mahmoud Rasheed
author_facet	Al-shyoukh, Fayis Mahmoud Rasheed
author_sort	Al-shyoukh, Fayis Mahmoud Rasheed
title	The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan
title_short	The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan
title_full	The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan
title_fullStr	The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan
title_full_unstemmed	The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan
title_sort	mandatory adoption of ifrs and earnings quality: the moderating effect of family firms in jordan
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2020
url	https://etd.uum.edu.my/9359/1/depositpermission_s95478.pdf https://etd.uum.edu.my/9359/2/s95478_01.pdf https://etd.uum.edu.my/9359/3/s95478_references.docx
_version_	1747828581195579392

The mandatory adoption of IFRS and earnings quality: the moderating effect of family firms in Jordan

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