Earnings Quality and IFRS Research in Africa: Recent Evidence, Issues and Future Direction

Research Journal of Finance and Accounting, Vol 7, No, 16, pp. 84-94, 2016

26 Pages Posted: 2 Sep 2016 Last revised: 4 Sep 2016

See all articles by Peterson K Ozili

Peterson K Ozili

University of Essex - Essex Business School; Central Bank of Nigeria

Date Written: August 31, 2016

Abstract

This paper review the recent empirical research on IFRS and earnings quality among African studies and show mixed conclusions regarding the impact of IFRS on earnings quality and financial reporting quality in the region. Also, some discussions on factors that led to the growth in the earnings quality African literature over the last decade as well as some challenges in the recent literature, are provided. Also, the study makes several observations regarding IFRS and earnings quality research in Africa and suggests potential directions for future research. The need to (i) understand the recent direction of earnings quality research in Africa, (ii) understand the interaction between policy and earnings quality research, if any, in the African region, and (iii) the need to maintain high-level rigour in earnings quality research while ensuring greater interaction between policy and research, makes this study important. Given the paucity of research on earnings quality in developing countries, this study contributes to the broader earnings quality literature by providing a review of the African earnings quality literature; hence, conclusions based on empirical studies in this review are not intended to be generalised to developed countries but only to developing countries. Finally, while insights in this paper may be informative to the reader, the intended objective is to stimulate debates that would improve the outputs of earnings quality research and the overall quality of accounting disclosure among firms in Africa.

Keywords: Earnings Quality, Standard Setting, Earnings Management, IFRS Adoption, Accounting Quality, Disclosure Regulation

JEL Classification: M40, M41, M48, O55

Suggested Citation

Ozili, Peterson Kitakogelu, Earnings Quality and IFRS Research in Africa: Recent Evidence, Issues and Future Direction (August 31, 2016). Research Journal of Finance and Accounting, Vol 7, No, 16, pp. 84-94, 2016. Available at SSRN: https://ssrn.com/abstract=2833081

Peterson Kitakogelu Ozili (Contact Author)

University of Essex - Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Central Bank of Nigeria ( email )

Plot 33, Abubakar Tafawa Balewa Way
Central Business District, Cadastral Zone
Abuja
Nigeria

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