The relationship between financial reporting standards and accounting irregularities: evidence from US banks

Purpose The purpose of this paper is to explore whether the choice International Financial Reporting Standards (IFRS) vs Generally Accepted Accounting Principles (GAAP) associated with frequency and likelihood accounting irregularities fraud in US banks. Design/methodology/approach authors examine relationship between financial reporting standards publicly listed Using a sample 4,284 banks observed USA over period 1996–2014. They used logit model estimate corporate misreporting having been committed terms irregularities. Findings show that use GAAP exhibit better operating performance than fraudulent IFRS except for certain variables. also find are more likely commit when they have follow relatively bank performance. Practical implications Overall, empirical findings result consistent Kohlbeck Warfield’s (2010) linked fewer Originality/value In study, significant effect on during Dodd–Frank period. It finds choose engage fraud.