Earnings Conservatism in Pre- and Post- IFRS Periods in Turkey: Panel Data Evidence on the Firm Specific Factors

Journal of Accounting and Management Information Systems, Vol. 9, No. 3, pp. 403-421, 2010

Posted: 26 Nov 2010 Last revised: 29 Nov 2010

Cagnur Kaytmaz Balsari

Dokuz Eylul University

Serdar Ozkan

American University of the Middle East; Izmir University of Economics

Mustafa Gurol Durak

Yasar University

Date Written: September 1, 2010

Abstract

In order to increase the usefulness and quality of financial reporting, there is a move to IFRS globally. Sharing similar motivations with the rest of the world, since 2005 all publicly traded companies in Turkey have been preparing their financial statements according to International Accounting/Financial Reporting Standards (IFRS) mandatory.

Considering the need for understanding the economic consequences of harmonization, we investigate the impact of IFRS adoption on the earnings conservatism as a dimension of reporting quality in Turkey.

The results of the study show that IFRS adoption has increased both the timeliness and earnings conservatism (asymmetric timeliness), the impact is stronger for financial firms, for firms having lower debt levels, and for smaller firms.

Keywords: Turkey, IFRS, Earnings Conservatism, Panel Data

JEL Classification: M41

Suggested Citation

Kaytmaz Balsari, Cagnur and Ozkan, Serdar and Durak, Mustafa Gurol, Earnings Conservatism in Pre- and Post- IFRS Periods in Turkey: Panel Data Evidence on the Firm Specific Factors (September 1, 2010). Journal of Accounting and Management Information Systems, Vol. 9, No. 3, pp. 403-421, 2010. Available at SSRN: https://ssrn.com/abstract=1714386

Cagnur Kaytmaz Balsari (Contact Author)

Dokuz Eylul University ( email )

Buca Ι zmir

Serdar Ozkan

American University of the Middle East ( email )

250 St.
Block 3, Building 1
Egaila
Kuwait

Izmir University of Economics ( email )

Sakarya Cad. No: 156
Balcova
Izmir, 35330
Turkey

Mustafa Gurol Durak

Yasar University ( email )

Izmir
Turkey

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