The role of the national institutional environment in IFRS convergence: a new approach

June Cao, Chris Patel

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
2 Downloads (Pure)


This study uses an ideal setting to capture the influence of the national institutional environment on outcomes (i.e., earnings quality) of IFRS convergence using a within-country approach. We show that earnings quality in terms of discretionary accruals and persistence has increased, while conservatism has decreased after IFRS convergence. The results are more pronounced in companies with a strong institutional environment. Our results are robust after considering incentives factors and other confounding factors. Our findings show differences in earnings quality in firms within a country adopting the same standards, let alone in firms worldwide. This indicates the context embeddedness of accounting standards.
Original languageEnglish
Pages (from-to)3367-3406
Number of pages40
JournalAccounting and Finance
Issue number4
Early online date10 Sep 2019
Publication statusPublished - Dec 2020

Bibliographical note

Copyright © 2019 The Authors. Accounting & Finance published by John Wiley & Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.


  • Earnings quality
  • IFRS convergence
  • Institutional environment
  • Within-country approach


Dive into the research topics of 'The role of the national institutional environment in IFRS convergence: a new approach'. Together they form a unique fingerprint.

Cite this