ADOPTION OF THE STANDARD IFRS AND EARNINGS QUALITY: THE EARNINGS PERSISTENCE OF LISTED COMPANIES AT BM&FBOVESPA

The objective of this research was to analyze the relationship between earnings persistence, of companies listed on the BM&FBovespa, compared to IFRS. The research was based on data from financial statements, separate pre-convergence (2003-2007 years), and post-convergence (2010-2014 years),...

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Bibliographic Details
Authors: Silva, Josimar Pires da, Bonfim, Mariana Pereira, Niyama, Jorge Katsumi, Silva, César Augusto Tibúrcio
Format: article
Status:Published version
Publication Date:2017
Country:Brasil
Institution:Universidade de São Paulo (USP)
Repository:Revista de contabilidade e organizações
Language:Portuguese
English
OAI Identifier:oai:revistas.usp.br:article/125846
Online Access:https://www.revistas.usp.br/rco/article/view/125846
Access Level:Open access
Keyword:Earnings Quality
IFRS
Earnings Persistence.
Qualidade do Lucro
Padrão IFRS
Persistência do Lucro.
Description
Summary:The objective of this research was to analyze the relationship between earnings persistence, of companies listed on the BM&FBovespa, compared to IFRS. The research was based on data from financial statements, separate pre-convergence (2003-2007 years), and post-convergence (2010-2014 years), thus resulting in a sample of 235 companies, with 2,350 observations. To calculate the proxy of earnings quality has been taken based on this model in the papers of Dechow and Schrand (2004), Dechow, Ge, and Schrand (2010) and Perotti and Wagenhofer (2014), which considers the β as the measure of earnings persistence. The findings showed that there was an increase in the quality of earnings after the adoption of IFRS for companies of BM&FBovespa, showing consistency with the international researches in which convergence to international accounting standards, based on principles rather than rules, could result in an increase in earnings quality for companies.