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IFRS and Accounting Information Quality: The Case of Jordan

Journal of Administrative and Economics Science

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Field Value
 
Title IFRS and Accounting Information Quality: The Case of Jordan
 
Creator Saaydah, Mansour .
 
Description Presented Paper in International Financial Reporting Standards (IFRS) Conference - Challenges & Opportunities 1st – 2nd May, 2012 Organized by College of Business & Economics, Qassim University, Saudi ArabiaAbstract.  The  objective  of  this  paper  is  to  examine  the  impact  of  applying  IFRS  by  Jordanian  listed companies on the value relevance (quality) of accounting information when setting the value of the firm in the stock market. The sample consists of 11 banks and 34 industrial companies. The analysis is based on sample  firms'  annual  data  of  4  individual  years  within  the  period  1996-2009.  The  methodology involved the use a cross-sectional OLS regression model that explains the market value of the firm using IFRS-based  accounting  information  (book  value,  earnings,  operating  cash  flows  and  discretional accruals). The individual-year  tests'  results  are  mixed  and  there  is  no  consistent  set  of  accounting variables  capable of  explaining  the  market  value  of  a  firm  over  the  entire  period  of  the  study.  One possible explanation of this overall result is that IFRS are still applied lightly in  Jordan.  However,  we  may  still  conclude  that,  in the  IFRS  era,  operating  cash  flows  and  discretional accruals  are  better  predictors  of  a  bank's  market  value,  while  book  value  and  earnings  are better predictors  of  an  industrial  firm's  market  value.  Pooled  data  test  results  do  not  contradict  this latter conclusion.  Keywords: IFRS adoption, Jordan, banks, industrial companies, Market value
 
Publisher Qassim University Academic Publishing and translation
 
Contributor —
 
Date 2012-04-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://publications.qu.edu.sa/ojs/index.php/economic/article/view/505
 
Source Journal Of Administrative And Economics Science; Vol 5, No 2
 
Language eng
 
Relation http://publications.qu.edu.sa/ojs/index.php/economic/article/view/505/491