Purpose

The study aims to investigate the impact of International Financial Reporting Standards (IFRS)-converged standards (Indian Accounting Standards (INAS)) on the accounting quality of Indian firms. The phased manner approach of implementing INAS provides us a unique setting to investigate the issue in India.

Design/methodology/approach

The study used difference-in-difference (DiD) methodology, where the accounting quality is compared between test firms and benchmark firms during the pre-and post-INAS adoption period. Accounting quality is operationalized through four different constructs, namely, earnings smoothing, discretionary accruals, earnings timeliness and value relevance of earnings.

Findings

The findings deduced from the empirical results demonstrate that accounting quality has been significantly reduced after the adoption of INAS. In particular, results show that the degree of earnings smoothing, and the magnitude of discretionary accruals have been increased among test firms in the post-adoption year. Besides, findings provide evidence that timely recognition of losses and value relevance of earnings has been reduced for test firms relative to benchmark firms after the adoption of INAS.

Practical implications

The results suggest that the mere adoption of high-quality standards does not ensure higher accounting quality in countries with a weaker enforcement mechanism. Hence, stringent enforcement mechanisms are needed to ensure full compliance with accounting standards. This study serves as a case study for other emerging countries that are in the process of IFRS convergence and make them aware of the unintended consequences of IFRS adoption.

Originality/value

Indian authorities implemented INAS in a phased manner that provides a unique setting to use DiD methodology. DiD helps to control the impact of concurrent economic shocks, while examining the impact of the particular regulatory shock. Besides, this is the first attempt to investigate the impact of INAS on the accounting quality of Indian firms.

中文翻译：

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高质量的标准是否能确保更高的会计质量？在印度的一项研究

目的

该研究旨在调查国际财务报告准则 (IFRS) 融合准则（印度会计准则 (INAS)）对印度公司会计质量的影响。实施 INAS 的分阶段方法为我们提供了一个独特的环境来调查印度的问题。

设计/方法/方法

该研究使用了差异中的差异 (DiD) 方法，在采用 INAS 之前和之后期间，比较测试公司和基准公司之间的会计质量。会计质量通过四种不同的结构进行操作，即收益平滑、可自由支配的应计、收益及时性和收益的价值相关性。

发现

从实证结果中推导出的发现表明，在采用 INAS 后，会计质量已显着降低。特别是，结果表明，在采用后一年，测试公司的收益平滑程度和可自由支配的应计金额有所增加。此外，调查结果提供的证据表明，在采用 INAS 后，测试公司相对于基准公司的损失和价值相关性的及时确认有所减少。

实际影响

结果表明，在执法机制较弱的国家，仅仅采用高质量标准并不能确保更高的会计质量。因此，需要严格的执行机制以确保完全遵守会计准则。本研究为其他处于 IFRS 趋同过程中的新兴国家提供案例研究，并使它们意识到采用 IFRS 的意外后果。

原创性/价值

印度当局分阶段实施 INAS，为使用 DiD 方法提供了独特的环境。DiD 有助于控制并发经济冲击的影响，同时检查特定监管冲击的影响。此外，这是首次尝试调查INAS对印度公司会计质量的影响。