The Impact of International Financial Reporting Standards (IFRS) Adoption on Accounting Quality: A Meta-Analysis

Abstract

This meta-analysis examines the impact of International Financial Reporting Standards (IFRS) adoption on accounting quality across various jurisdictions. Drawing upon a comprehensive review of existing literature and empirical studies, we synthesize findings to assess the overall effect of IFRS adoption on accounting quality metrics such as earnings management, financial statement comparability, and transparency. Our analysis incorporates data from multiple countries and industries to provide a holistic view of the relationship between IFRS adoption and accounting quality. The results indicate a mixed but generally positive impact of IFRS adoption on accounting quality, with evidence suggesting improvements in certain aspects such as earnings transparency and comparability, while also highlighting challenges such as increased complexity and subjectivity in financial reporting. Furthermore, our meta-analysis explores potential moderators and mediating factors that influence the relationship between IFRS adoption and accounting quality, including institutional differences, regulatory enforcement, and firm-specific characteristics. Overall, this meta-analysis contributes to our understanding of the consequences of IFRS adoption for accounting quality and provides insights for policymakers, standard setters, and practitioners in evaluating the effectiveness of international accounting standards in promoting high-quality financial reporting.