IFRS 9 and earnings management: the case of European commercial banks

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dc.contributor.authorNnadi, Matthias
dc.contributor.authorKeskudee, Atis
dc.contributor.authorAmaewhule, Wey
dc.date.accessioned2023-04-28T14:04:57Z
dc.date.available2023-04-28T14:04:57Z
dc.date.issued2023-04-18
dc.description.abstractPurpose This paper examines the impact of International Financial Reporting Standards (IFRS) 9 on earnings management (EM) using data from 2011 to 2019 of 100 commercial banks in Europe. Design/methodology/approach Using data from 2011 to 2019 of 100 commercial banks in Europe, the authors conducted several empirical investigations to test the mediating role of IFRS 9 on earnings manipulation through loan loss provision (LLP) by banks. Findings The result shows that the new accounting standards (IFRS 9) significantly affect the way banks report LLP. This paper provides evidence that non-listed banks in the EU engage in EM through LLP following IFRS 9 but experience less volatility of net income following the adoption. The findings indicate that such behaviour by banks cannot be suppressed by level of audit quality; suggesting that an improvement in accounting standards might not always guarantee accounting quality. Originality/value This finding has some policy implications; and regulators will need to identify additional tools to regulate or supervise EM behaviour.en_UK
dc.identifier.citationNnadi M, Keskudee A, Amaewhule W. (2023) IFRS 9 and earnings management: the case of European commercial banks. International Journal of Accounting and Information Management, Volume 31, Issue 3, July 2023, pp. 504-527en_UK
dc.identifier.issn1834-7649
dc.identifier.urihttps://doi.org/10.1108/IJAIM-09-2022-0203
dc.identifier.urihttps://dspace.lib.cranfield.ac.uk/handle/1826/19559
dc.language.isoenen_UK
dc.publisherEmeralden_UK
dc.rightsAttribution-NonCommercial 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/*
dc.subjectcommercial banksen_UK
dc.subjectearning managementen_UK
dc.subjectaccrualsen_UK
dc.subjectloan loss provisionen_UK
dc.subjectIFRS 9en_UK
dc.titleIFRS 9 and earnings management: the case of European commercial banksen_UK
dc.typeArticleen_UK

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