IFRS adoption and accounting quality: The case of South Africa
نویسنده
چکیده
South Africa is an important country within the continent of Africa. Its full adoption of International Financial Reporting Standards (IFRS) in 2005 for listed firms is unique. In this paper, I study the effects of IFRS adoption on accounting quality. I define accounting quality as earnings quality and value relevance, and hypothesize that both will increase post IFRS adoption. In a variety of specifications, I find that the earnings quality is not significantly improved post adoption. I also find that the value relevance of major balance sheet components changes post adoption.
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