The Impact of the Adoption of International Financial Reporting Standards (IFRS) on Value Relevance of Accounting Information in a Developing Market: Empirical Evidence from Saudi Arabia
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Saudi Digital Library
Abstract
The global acceptance of the International Financial Reporting Standards (IFRS) encouraged many developing countries to follow developed countries in changing their accounting standards. However, the debate over whether adopting the IFRS increases the quality of accounting information is still ongoing. This study aims to investigate whether there is a significant increase in the value relevance of accounting information provided by Saudi Arabian listed firms post-IFRS adoption. The study extends the literature on the financial reporting implications of the IFRS adoption in developing markets. The results of this research provide useful insights for regulators, academics, creditors and investors on the relationship between the IFRS and the value relevance of accounting information.