Impact of IFRS Application on Firm Performance Through Disclosure Quality

DOI

10.2991/978-94-6463-150-0_26How to use a DOI?

Keywords

Disclosure quality; Firm performance; IFRS application; Southeast Asian countries

Abstract

The paper examines the change of firm performance of listed companies by considering the influence of IFRS application. Furthermore, the mediating effect of disclosure quality is also considered in this study with Southeast Asian countries context. The application of IFRS has had a huge impact on the quality of financial reporting and thus increasing company performance. However, there has been a lack of studies integrating these factors into the same research model. The five-year dataset of companies listed on stock exchange of Southeast Asian countries during the period from 2017 to 2021 is used to investigate hypotheses. Additionally, we use the feasible general least squares estimation method to test the robustness of GMM estimation method results. The results exposed that there is positive and substantial influence of IFRS application on firm performance, which suitable for agency theory and economic theory of networks. Moreover, disclosure quality mediates the nexus between IFRS application and firm performance in Southeast Asian countries. According to the study’s outcomes, the higher the disclosure quality, the less information is omitted. That is, the information presented in the financial statements is disclosed more fully and carries more relevant value. This contributes to a higher financial firm performance. Therefore, companies need to improve the disclosure quality of financial statements by improving the level of omission of material items, especially by speeding up the application of IFRS in countries.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nha Nguyen Minh
AU  - Duong Nguyen Van
AU  - Hai Tran Thi Thanh
PY  - 2023
DA  - 2023/05/23
TI  - Impact of IFRS Application on Firm Performance Through Disclosure Quality
BT  - Proceedings of the International Conference on Emerging Challenges: Strategic Adaptation in The World of Uncertainties (ICECH 2022)
PB  - Atlantis Press
SP  - 386
EP  - 401
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-150-0_26
DO  - 10.2991/978-94-6463-150-0_26
ID  - NguyenMinh2023
ER  -