Explanatory research investigates how mandated IFRS adoption affects earnings quality in Ghana and Kenya, suggesting improvements in corporate reporting.
Key Points
This study aims to examine the relationship between mandatory IFRS adoption and earnings quality in Sub-Saharan Africa, specifically Ghana and Kenya.
Explanatory research design used to assess the effects of IFRS adoption.
Random OLS techniques analyzed data from 495 firm-year observations.
Data sourced from listed non-financial firms on the Nairobi and Ghana Stock Exchanges from 2010-2020.
Strong correlation found between IFRS adoption and earnings quality.
Improved transparency and disclosure predicted post-IFRS adoption.
Recommendations made for policymakers to enhance the corporate reporting environment.