The effect of IFRS 15 mandatory adoption on earnings management: Evidence from firms listed on the STOXX Europe 600 Index
Year: 2025
Type: article
Abstract: Research Question: Does the mandatory adoption of International Financial Reporting Standard (IFRS) 15 "Revenue from contracts with customers" affect earnings quality?Motivation: This study adds to the empirical literature on the effects of IFRS implementation on earnings quality by examining a specific standard that addresses one of the key performance indicators i.e., Revenue.Idea: This study investigates whether the adoption of IFRS 15 is associated with changes in both accrual-based and real earnings management activities. Data:The sample consists of firms listed on the STOXX Europe 600 index.We identified 3,327 firm-year observations over the 2012-2023 period.The study employs a differencein-differences design.Tools: We employed a multiple regression model with panel data, including industry and year fixed effects.Estimations were carried out using STATA software. Findings:The empirical results show that the adoption of IFRS 15 did not have a statistically significant effect on either accrual-based or real earnings management.They remain robust
Authors: Imen Mahfoudh, Sameh Kobbi-Fakhfakh
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4412640363