Financial reporting quality dynamics in India: the role of IFRS convergence and corporate governance
| dc.contributor.author | Gomes, Lorraine | |
| dc.contributor.author | Costa, Juao | |
| dc.date.accessioned | 2025-08-18T10:49:15Z | |
| dc.date.available | 2025-08-18T10:49:15Z | |
| dc.date.issued | 2025 | |
| dc.description.abstract | This paper aims to investigate the impact of International Financial Reporting Standards (IFRS) convergence on value relevance and earnings management for Indian listed firms while also exploring whether the relationship is moderated by the firms’ corporate governance structures. Design/methodology/approach Corporate governance (CG) scores of 573 listed firms were calculated by using a self-constructed index for a period of 7 years (2014–2015 to 2020–2021). Static and dynamic panel models with generalized method of moments (GMM) estimators were used to test the conditional hypothesis that the impact of the Indian IFRS converged standards (Indian Accounting Standards [IndAS]) on information quality is affected by the firm’s corporate governance strength. Findings The estimates reveal that the positive effect of corporate governance scores on the value relevance of earnings reduces in the presence of IFRS, whereas the interaction of both the variables on book values remains insignificant. Secondly, the use of IndAS reduces discretionary accruals, but corporate governance does not have a significant moderating effect within the equation. Practical implications The results offer an interesting perspective into the debate on IFRS consequences and the role of internal institutional frameworks. It provides preliminary evidence suggesting that although corporate governance improves the value relevance of earnings, it may not be entirely effective in reducing the management of earnings. Originality/value To the best of the authors’ knowledge, it is the first study in India to provide empirical findings on the role played by corporate governance mechanisms in explaining the relationship between IFRS convergence and accounting information quality. The analysis accounts for modelling issues such as endogeneity and autocorrelation by using dynamic panel models and instrumental variables. | |
| dc.identifier.uri | http://rcca.ndl.gov.in/handle/123456789/484 | |
| dc.language.iso | en | |
| dc.publisher | Corporate Governance: The International Journal of Business in Society | |
| dc.title | Financial reporting quality dynamics in India: the role of IFRS convergence and corporate governance | |
| dc.type | Article |