Faculty of Administration and Economics – University of Kerbala has discussed the M.A. thesis which is entitled “the application of International Financial Reporting Standards (IFRS) and its impact on earnings management and its reflection on investors’ decisions”.
The thesis presented by Zaid Neheama Abbas, includes measuring the level of application of International Financial Reporting Standards (IFRS) by means of a dummy variable that takes the number (0) for the years before applying the standards, and the number (1) for the years after applying the standards, and profit management practices are measured using the (Kothari et al., 2005) model, while investors’ decisions are measured by trading volume, which is measured by the traded values of shares.
The study concludes that there is a statistically significant and inverse effect of applying the International Financial Reporting Standards (IFRS) in the management of profits, and investors’ decisions, and the absence of a statistically significant effect of the management of profits in the decisions of investors.
