The impact of IFRS adoption on management of bad debt expense and real operational activities: evidence from South KoreaFootnote^*

* Accepted by Jeong-Bon Kim upon recommendation by Haina Shi.

References

• Ahmed, A. S., M. Neel, and D. Wang. 2013. “Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence.” Contemporary Accounting Research 30 (4): 1344–1372.10.1111/care.2013.30.issue-4
   Web of Science ®Google Scholar
• Barth, M., W. Landsman, and M. Lang. 2008. “International Accounting Standards and Accounting Quality.” Journal of Accounting Research 46 (3): 467–498.10.1111/j.1475-679X.2008.00287.x
   Web of Science ®Google Scholar
• Beneish, M. 2001. “Earnings Management: A Perspective.” Managerial Finance 27 (12): 3–17.10.1108/03074350110767411
   Google Scholar
• Burgstahler, D., and I. Dichev. 1997. “Earnings Management to Avoid Earnings Decreases and Losses.” Journal of Accounting and Economics 24 (1): 99–126.10.1016/S0165-4101(97)00017-7
   Web of Science ®Google Scholar
• Callao, S., and J. Jarne. 2010. “Have IFRS Affected Earnings Management in the European Union?” Auditing in Europe 7 (2): 159–189.
   Google Scholar
• Callao, S., J. Jarne, and J. Laínez. 2007. “Adoption of IFRS in Spain: Effect on the Comparability and Relevance of Financial Reporting.” Journal of International Accounting, Auditing and Taxation 16 (2): 148–178.10.1016/j.intaccaudtax.2007.06.002
   Google Scholar
• Chen, H., Q. Tang, Y. Jiang, and Z. Lin. 2010. “The Role of International Financial Reporting Standards in Accounting Quality: Evidence from the European Union.” Journal of International Financial Management and Accounting 21: 220–278.10.1111/jifm.2010.21.issue-3
   Web of Science ®Google Scholar
• Choe, K., and Y. Son. 2012. “The Effects of K-IFRS Adoption on the Financial Statement Items, Financial Ratios, and Accruals.” Korean Accounting Journal 21 (6): 209–256.
   Google Scholar
• Choi, W., H. Lee, and J. Lim. 2012. “A Case Study on Tax Effect for a Bank Adopting K-IFRS.” Korean Accounting Journal 21 (5): 331–359.
   Google Scholar
• Clarkson, P., J. Hanna, G. Richardson, and R. Thompson. 2011. “The Impact of IFRS Adoption on the Value Relevance of Book Value and Earnings.” Journal of Contemporary Accounting and Economics 7 (1): 1–17.10.1016/j.jcae.2011.03.001
   Google Scholar
• Cohen, D. A., A. Dey, and T. Z. Lys. 2008. “Real and Accrual‐based Earnings Management in the Pre‐ and Post‐sarbanes‐oxley Periods.” The Accounting Review 83 (3): 757–787.10.2308/accr.2008.83.3.757
   Web of Science ®Google Scholar
• Daske, H., L. Hail, C. Leuz, and R. Vendi. 2008. “Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences.” Journal of Accounting Research 46 (5): 1085–1142.
   Web of Science ®Google Scholar
• Degeorge, F., J. Patel, and R. Zeckhauser. 1999. “Earnings Management to Exceed Thresholds.” Journal of Business 72 (1): 1–33.
   Web of Science ®Google Scholar
• Dhaliwal, D., C. Gleason, and L. Mills. 2004. “Last Chance Earnings Management: Using the Tax Expense to Meet Analysts’ Forecasts.” Contemporary Accounting Research 21 (2): 431–460.10.1506/TFVV-UYT1-NNYT-1YFH
   Web of Science ®Google Scholar
• Doukakis, L. C. 2014. “The Effect of Mandatory IFRS Adoption on Real and Accrual-based Earnings Management Activities.” Journal of Accounting and Public Policy 33 (6): 551–572.10.1016/j.jaccpubpol.2014.08.006
   Web of Science ®Google Scholar
• Ewert, R., and A. Wagenhofer. 2005. “Economic Effects of Tightening Accounting Standards to Restrict Earnings Management.” The Accounting Review 80 (4): 1101–1124.10.2308/accr.2005.80.4.1101
   Web of Science ®Google Scholar
• Financial Supervisory Commission. 2007. “Korea Accounting Standards Board Announces Korean Translation of International Financial Reporting Standards.” https://www.fsc.go.kr/eng/new_press/releases.jsp?menu=01&bbsid=BBS0048&selYear=2007&nxPage=1.
   Google Scholar
• Frank, M., and S. Rego. 2006. “Do Managers Use the Valuation Allowance Account to Manage Earnings around Certain Earnings Targets?” The Journal of the American Taxation Association 28 (1): 43–65.10.2308/jata.2006.28.1.43
   Google Scholar
• Guenther, N., B. Gegenfurtner, C. Kaserer, and A. Achleitner. 2009. “International Financial Reporting Standards and Earnings Quality: The Myth of Voluntary vs. Mandatory Adoption.” Working paper series. Center For Entrepreneurial and Financial: 1–44.
   Google Scholar
• Ipino, E., and A. Parbonetti. 2017. “Mandatory IFRS Adoption: The Trade-off Between Accrual and Real-based Earnings Management.” Accounting and Business Research 47 (1): 91–121.10.1080/00014788.2016.1238293
   Web of Science ®Google Scholar
• Jackson, S. B., and X. Liu. 2010. “The Allowance for Uncollectible Accounts, Conservatism, and Earnings Management.” Journal of Accounting Research 48 (3): 565–601.10.1111/joar.2010.48.issue-3
   Web of Science ®Google Scholar
• Jeanjean, T., and H. Stolowy. 2008. “Do Accounting Standards Matter? An Exploratory Analysis of Earnings Management Before and After IFRS Adoption.” Journal of Accounting and Public Policy 27 (6): 480–494.10.1016/j.jaccpubpol.2008.09.008
   Web of Science ®Google Scholar
• Kabir, M. H., F. Laswad, and M. A. Islam. 2010. “Impact of IFRS in New Zealand on Accounts and Earnings Quality.” Australian Accounting Review 20 (4): 343–357.10.1111/auar.2010.20.issue-4
   Web of Science ®Google Scholar
• Kim, J. 2011. “Adoption of Korean IFRS.” International Financial Law Review. http://www.iflr.com/Article/2778881/Adoption-of-%20Korean-IFRS.html.
   Google Scholar
• Kim, S., and Y. Koh. 2011. “A Study on the Taxation Effects of Banking Business Allowance for Bad Debts due to K-IFRS Adoption.” Korean Accounting Journal 20 (1): 109–134.
   Google Scholar
• Kim, H., and K. Lee. 2015. “Accounting Practices for Allowance for Bad Debts due to K-IFRS Adoption in the Banking Industry.” Study on Accounting, Taxation, and Auditing 57 (2): 1–31.
   Google Scholar
• Kim, J., W. Park, and H. Ryu. 2011. “A Case Study on the Effect of Adopting K-IFRS on the Banking and Insurance Sector.” Korean Accounting Journal 20 (2): 153–172.
   Google Scholar
• Langmead, J. M., and J. Soroosh. 2009. “International Financial Reporting Standards: The Road Ahead.” CPA Journal 79 (3): 16–24.
   Google Scholar
• Lee, H., and W. Choi. 2016. “Allowance for Uncollectible Accounts as a Tool for Earnings Management.” International Journal of Accounting and Information Management 24 (2): 162–184.10.1108/IJAIM-06-2015-0040
   Web of Science ®Google Scholar
• Liu, C., L. Yao, N. Hu, and L. Liu. 2011. “The Impact of IFRS on Accounting Quality in a Regulated Market: an Empirical Study of China.” Journal of Accounting, Auditing, and Finance 26 (4): 659–676.10.1177/0148558X11409164
   Google Scholar
• Marquardt, C., and C. Wiedman. 2004. “How Are Earnings Managed? An Examination of Specific Accruals.” Contemporary Accounting Research 21 (2): 461–491.10.1506/G4YR-43K8-LGG2-F0XK
   Web of Science ®Google Scholar
• McNichols, M., and P. Wilson. 1988. “Evidence of Earnings Management from the Provision for Bad Debts.” Journal of Accounting Research 26: 1–31.10.2307/2491176
   Google Scholar
• Nouri, Y., and E. Abaoub. 2014. “Accounting Manipulations and IFRS: Evidence from French Companies.” International Journal of Economics and Finance 6 (11): 229–244.
   Google Scholar
• Payne, J., and S. Robb. 2000. “Earnings Management: The Effect of Ex Ante Earnings Expectations.” Journal of Accounting, Auditing and Finance 15: 371–392.10.1177/0148558X0001500401
   Google Scholar
• Roychowdhury, S. 2006. “Earnings Management Through Real Activities Manipulation.” Journal of Accounting and Economics 42 (3): 335–370.10.1016/j.jacceco.2006.01.002
   Web of Science ®Google Scholar
• Rudra, T. 2012. “Does IFRS Influence Earnings Management? Evidence from India.” Journal of Management Research 4 (1): 1–13.
   Google Scholar
• Schipper, K. 2003. “Principles-based Accounting Standards.” Accounting Horizons 17 (1): 61–72.10.2308/acch.2003.17.1.61
   Google Scholar
• Sellami, M., and H. Fakhfakh. 2014. “Effect of the Mandatory Adoption of IFRS on Real and Accruals-based Earnings Management: Empirical Evidence from France.” International Journal of Accounting and Economics Studies 2 (1): 22–33.
   Google Scholar
• Teoh, S., T. Wong, and G. Rao. 1998. “Are Accruals during Initial Public Offerings Opportunistic?” Review of Accounting Studies 3 (1–2): 127–139.
   Google Scholar
• Zang, Amy Y. 2012. “Evidence on the Trade-off between Real Manipulations and Accrual Manipulations.” The Accounting Review 87 (2): 675–703.10.2308/accr-10196
   Web of Science ®Google Scholar
• Zeghal, D., S. Chtourou, and Y. M. Fourati. 2012. “The Effect of Mandatory Adoption of IFRS on Earnings Quality: Evidence from the European Union.” Journal of International Accounting Research 11 (2): 1–25.10.2308/jiar-10221
   Google Scholar