Impacto de las IFRS en la calidad del reporte financiero en Latinoamérica y el Caribe

Montoya, Juan Camilo Cardona

doi:10.22201/fca.24488410e.2018.1233

Cited by 10 publications

(13 citation statements)

References 9 publications

(40 reference statements)

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“…As the variable |DA| is an inverse measure of accounting information quality, the negative coefficient indicates that IFRS adoption has reduced the scope of earnings management practices around 2% in these firms, corroborating with the results documented by Pelucio-Grecco et al (2004) for Brazil, Manzano and Conesa (2014) for Mexico, Houqe et al (2014) for France, Germany and Sweden, and Montoya (2018) for a set of Latin American firms. Some control variables also presented significant coefficients, as firm size, cash flow from operating activities and Big 4 auditorship.…”

Section: Results Discussionsupporting

confidence: 84%

“…The results show that the adoption of IFRS standards reduces the scope of earnings management practices in these firms. This finding contributes to the debate of the benefits of IFRS adoption in low investor protection countries (Houqe et al, 2014;Manzano & Conesa, 2014;Montoya, 2018;.…”

Section: Discussionmentioning

confidence: 65%

“…Despite of, found evidence that changes from local accounting standards to IFRS standards provided an increase in value relevance of Latin American firms. Montoya (2018) verified a widely sample of Latin American and Caribbean firms from 2006 to 2014 and found evidence that, during the period of IFRS application, companies report lower earnings management levels, increasing accounting information quality. Under the view of earnings opacity, Mongrut and Winkelried (2019) provided evidence that the adoption of IFRS standards tend not to be able to reduce the degree of opacity in Latin American firms.…”

Section: Figure 1 Role Of Financial Reportingmentioning

confidence: 69%

“…Despite, Montoya (2018) found a positive coefficient, demonstrating that incentives or pressures in Latin American companies may be relevant factors to increase the use of discretion in accounting numbers.…”

Section: Results Discussionmentioning

confidence: 96%

“…Consequently, improving the information quality through the adoption of IFRS standards would only be significant in countries with incentives to adopt these standards (Christensen, Lee, Walker & Zeng, 2015). Despite that, some studies have demonstrated that the benefits of IFRS adoption could also be perceived in low investor countries, including Latin America (Manzano & Conesa, 2014;Houqe et al, 2014;Montoya, 2018;.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

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Essays on cash holdings, accounting quality and cost of capital under IFRS adoption in Latin America

Tortoli¹

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This thesis aims to explore the relations between cash holdings, accounting quality and cost of capital in the context of IFRS adoption in Latin America. In the first essay, we verified the effect of IFRS adoption on accounting quality, especially, earnings management practices. The results show that the adoption of IFRS standards reduced the scope of earnings management practices in Latin American firms. The results also show that IFRS adoption has decreased cash holdings in these firms, as a consequence of higher quality standards. Additional findings suggest that the benefits of IFRS adoption is more pronounced in non-ADR firms since ADR firms present strong incentives to improve the level of accounting information quality. In the second essay, we analyzed the effects of IFRS adoption in the relationship between cash holdings and the cost of capital in Latin American firms. Our findings demonstrated that IFRS adoption impacted the relationship between cash holdings and cost of equity in Latin American firms. That is, when the firms increase cost of equity post-IFRS adoption, they also increase cash levels. Additional analysis demonstrated that IFRS adoption impacted cost of equity only in non-internationalized firms since these firms are more likely to face challenges in relation to the cost of capital than its counterparts. For the cost of debt, we did not find significant results since creditors already have their own mechanisms for loans guarantees. Finally, in the third essay, we analyzed whether discretionary accruals measured by gross income are value relevant in the context of IFRS adoption, comparing with discretionary accruals measured by net income. In addition, we analyzed whether discretionary accruals measured by gross income have complementary information to cash holdings, impacting value relevance. The results demonstrated that discretionary accruals measured by gross income influences value relevance and, the results are sensitive to the context of IFRS adoption. For discretionary accruals measured by net income, we did not find significant results. Additional findings suggest that in context of better accounting quality, the information related to gross income became more reliable, being a better way to predict future performance of firms than cash holdings. In general, this thesis seeks to contribute to literature demonstrating that the adoption of IFRS standards influences the relations between cash holdings, accounting quality and cost of capital in Latin American countries, emerging fruitful insights for future research.

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Section: Results Discussionsupporting

confidence: 84%

Section: Discussionmentioning

confidence: 65%

Section: Figure 1 Role Of Financial Reportingmentioning

confidence: 69%

Section: Results Discussionmentioning

confidence: 96%

Section: Hypotheses Developmentmentioning

confidence: 99%

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Essays on cash holdings, accounting quality and cost of capital under IFRS adoption in Latin America

Tortoli¹

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Earnings management in Latin America: Systematic review and research agenda

Tello-Gamarra,

Kronbauer,

do Amaral Carneiro Cabral

2024

SUMNEG

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Introduction/Objective: Despite the abundance of studies on earnings management in Latin America, research into the current state of this field remains limited. Therefore, this article aims to analyse the content and evolution of earnings management research within the Latin American context. Methodology: This study employed a systematic literature review of earnings management in Latin America spanning the years 1994 to 2023. Two databases, Scopus and Web of Science, were utilised to identify and select 132 relevant articles. Results: The study makes three significant contributions. Firstly, it conducts a descriptive analysis of earnings management research in the region. Secondly, it categorises the research field into seven themes: earnings management metrics, corporate governance, business strategy, alignment with International Financial Reporting Standards (IFRS), audit quality, ownership structure, and various aspects of earnings management. Thirdly, it outlines a comprehensive research agenda. Conclusions: This study underscores that earnings management in Latin America remains a fertile area for research. Furthermore, it suggests new avenues for empirical and theoretical exploration.

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The effect of the quality of local government financial reports on corruption moderated with the audit findings

Aminah¹

2022

EA-XXI

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The study examines the effect of the Quality of Local Government Financial Reports (LKPD) on corruption moderated by audit findings. The study was conducted on all provincial governments in Indonesia. Corruption is measured by data on corruption cases in the Attorney General’s Office. The audit findings are evaluated using weaknesses in the Information Control System (SPI) and discoveries of non-compliance with laws and regulations. This research use data regression, model testing, hypothesis testing, and coefficient of determination. The results reveal that the LKPD’s quality had a negative and significant impact on corruption. This analysis states that if the quality of LKPD increases by 1%, corruption will decrease by 0.80%. The audit findings strengthen the relationship between the quality of LKPD on corruption. This finding supports the agency theory and stewardship theory. Therefore, the provincial government should improve the quality of LKPD to minimize audit findings and corruption.

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Impacto de las IFRS en la calidad del reporte financiero en Latinoamérica y el Caribe

Cited by 10 publications

References 9 publications

Essays on cash holdings, accounting quality and cost of capital under IFRS adoption in Latin America

Essays on cash holdings, accounting quality and cost of capital under IFRS adoption in Latin America

Earnings management in Latin America: Systematic review and research agenda

The effect of the quality of local government financial reports on corruption moderated with the audit findings

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