The effect of IFRS enforcement factors on analysts’ earnings forecasts accuracy

Nadia Cheikh Rouhou; Wyème Ben Mrad Douagi; Khaled Hussainey

The effect of IFRS enforcement factors on analysts’ earnings forecasts accuracy

Nadia Cheikh Rouhou, Wyème Ben Mrad Douagi, Khaled Hussainey

Université de Tunis El Manar

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Abstract

This paper examines the effect of IFRS mandatory adoption by French companies on analysts’ earnings forecast accuracy. In addition, we consider the impact of corporate governance mechanisms, as IFRS enforcement factors, on earnings forecasts. Using a sample of 98 companies over the period from 2003 to 2007, our results show increased forecast accuracy after the mandatory adoption of IFRS. We also find that the independence, the international competency and the efficiency of the board members, the board size, and the quality of external audit are important factors for the implementation of IFRS and, these factors improve earnings forecast accuracy.

Original language	English
Pages (from-to)	266-282
Journal	Corporate Ownership and Control
Volume	13
Issue number	1 (continued 2)
Early online date	8 Sept 2015
Publication status	Published - Sept 2015

Keywords

IFRS enforcement factors
corporate governance

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HUSSAINEY_cright_16A_The Effect of IFRS Enforcement Factors on Analysts_ Earnings Forecasts Accuracy
This is the post-print version of an article published in Corporate Ownership and Control for which permission to publish in this Institutional Repository has been granted by the Publisher, ©Virtus Interpress
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Cite this

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abstract = "This paper examines the effect of IFRS mandatory adoption by French companies on analysts{\textquoteright} earnings forecast accuracy. In addition, we consider the impact of corporate governance mechanisms, as IFRS enforcement factors, on earnings forecasts. Using a sample of 98 companies over the period from 2003 to 2007, our results show increased forecast accuracy after the mandatory adoption of IFRS. We also find that the independence, the international competency and the efficiency of the board members, the board size, and the quality of external audit are important factors for the implementation of IFRS and, these factors improve earnings forecast accuracy.",

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AB - This paper examines the effect of IFRS mandatory adoption by French companies on analysts’ earnings forecast accuracy. In addition, we consider the impact of corporate governance mechanisms, as IFRS enforcement factors, on earnings forecasts. Using a sample of 98 companies over the period from 2003 to 2007, our results show increased forecast accuracy after the mandatory adoption of IFRS. We also find that the independence, the international competency and the efficiency of the board members, the board size, and the quality of external audit are important factors for the implementation of IFRS and, these factors improve earnings forecast accuracy.

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The effect of IFRS enforcement factors on analysts’ earnings forecasts accuracy

Abstract

Keywords

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