【文章內(nèi)容簡介】 ssures from outside markets. Murphy (1999) also used Swiss data to study the determinants of the adoption of IFRS. She found that panies that adopt IFRS have a higher percentage of foreign sales and a higher number of foreign exchange listings. ElGazzar et al. (1999) found the same relationships using data from various countries. In addition, they concluded that being domiciled in an EU country and having a lower debt to equity ratio is positively associated with the adoption of IFRS. Other determinants of the adoption of international standards mentioned in the literature include a high profitability, the issuance of equity during the year of adoption, domestic GAAP differing significantly from IFRS or US GAAP and, related to the latter, being domiciled in a country with a bankoriented financial system (Ashbaugh, 2021。 Cuijpers and Buijink, 2021). Not all panies that seek the international investment status that es with the adoption of IFRS are, however, willing to fulfill all of the requirements and obligations involved. According to a study by Street and Gray (2021) there is a significant nonpliance with IFRS in 1998 pany reports, especially in the case of IFRS disclosure requirements. With the revision of IAS 1, effective for financial statements covering periods beginning on or after 1 July 1998, financial statements are prohibited from noting pliance with International Accounting Standards ‘unless they ply with all the requirements of each applicable Standard and each applicable Interpretation of the Standing Interpretations Committee’. 5 All panies included in our IFRS sample mention IFRS pliance in their financial statements after the revised IAS 1 became effective. Nevertheless, adopters of IFRS that appear to be fully pliant might as well be falsely signaling to be of high quality. Ball et al. (2021) argue that firms’ incentives to ply with accounting standards depend on the penalties assessed for nonpliance. When costs of plying to IFRS are viewed to exceed the costs of nonpliance, substantial nonpliance will continue to be a problem. While the main objective of adopting IFRS is considered to be enhancing the quality of the information provided in the financial statements, Ball et al. (2021) further suggest that adopting high quality standards might be a necessary condition for high quality information but not a sufficient condition. If the adoption of IFRS cannot be associated with significantly higher financial reporting quality, IFRS adoption cannot serve as a signaling instrument for a credible mitment to higher quality accounting. This study addresses this issue empirically. . Earnings Management: Incentives and Constraints One way of assessing the quality of reported earnings is examining to what extent earnings are managed, with the intention to ‘either mislead some stakeholders about the underlying economic performance of the pany or to influence contractual outes that depend on reported accounting numbers’ (Healy and Wahlen, 1999). Incentives for earnings management, either through accounting decisions or structuring transactions, are ample. Managers may be inclined to manage earnings due to the existence of explicit and implicit contracts, the firm’s relation with capital markets, the need for external financing, the political and regulatory environment or several other specific circumstances (Vander Bauwhede, 2021). A number of studies suggest that the quality of reported financial statement information is in large part determined by the underlying economic and institutional factors influencing managers’ and auditors’ incentives. According to Ball et al. (2021) the demand for accounting ine differs systematically between monlaw and codelaw countries. In monlaw countries, which are characterized by arm’s length debt and equity markets, a diverse base of investors, high risk of litigation and strong investor protection, accounting information is designed to meet the needs of investors. In codelaw countries, capital markets are less active. Investor protection is weak, litigation rates are lower and pa