The Impact of Changes in Accounting Standards on Earnings Management Applied Research from 2003-2014

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Kawa W. Muhamad
Subhi M. Saleh
Kees van Paridon


This study considers the question whether the changes in Accounting Standards has led to companies making less use of earnings management. The paper is an attempt to investigate whether the application of high quality standards like International Financial Reporting Standards (IFRS) is related to high financial reporting quality. This study addresses this issue empirically. Furthermore, this research examines whether German companies that have applied IFRS have less earnings management compared to German companies that report according to the German Generally Accepted Accounting Principles (GGAAP). The sample, consisting of two equally large listed companies in Germany (Südzucker Group and Henkel Group) from 2003-2014. The study suggests that IFRS-adopters show different earnings management performance compared to companies reporting under German GAAP. This finding contributes to the discussion on whether high quality standards are appropriate and operational in countries with weak investor protection rights. The result shows that adopters of IFRS in Germany can be related with less use of earnings management as a result of changes in accounting standards. This result is contradictory with previous research that was done by Van Tendeloo and Vanstraelen, (2005), and consistent with the previous research conducted by Ball et al. (2003).


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How to Cite
Muhamad, K. W., Saleh, S. M. and Paridon, K. van (2020) “The Impact of Changes in Accounting Standards on Earnings Management: Applied Research from 2003-2014”, Koya University Journal of Humanities and Social Sciences, 2(2), pp. 166-175. doi: 10.14500/kujhss.v2n2y2019.pp166-175.
Author Biographies

Kawa W. Muhamad, Department of Finance and Banking, College of Administration and Economics, Salahaddin University- Erbil, Kurdistan Region, Iraq

Kawa Wali, the lecturer of managerial and financial accounting, he has been achieved master degree in Accounting and Finance in 2007 at the Erasmus University-Rotterdam, Netherlands. He started working at Faculty of Management and Economics at Salahaddin University in 2010. He published several articles in accounting and finance in International and National Journals. Recently, a PhD student at the Salahaddin University-Erbil-Kurdistan Region-Iraq, in cooperation with the Erasmus University- Rotterdam in the Netherlands. He lives in Erbil, DC  

Subhi M. Saleh, Department of Accounting, College of Administration and Economics, Salahaddin University-Erbil, Kurdistan Region, Iraq

Sabhi Saleh Associate Professor of Accounting, Faculty of Management and Economics, University of Salahaddin. He is credited with developing the accounting department. He has published many researches in the field of accounting, finance and international financial reporting standards. He has participated in many international and national conferences and has also supervised many researches of students at the master's and doctoral levels. He is a member of several national and international economic and accounting forums and unions.

Kees van Paridon, Department of Accounting and Finance, College of Economics and Business, Erasmus University, Rotterdam, Netherlands

Kees van Paridon, Professor of Economics at Erasmus University Rotterdam (EUR), Netherlands. He is the author of numerous publications and research published in the field of accounting, management, and -finance. He has participated in many international and national conferences and has also supervised many researches of students at the master's and doctoral levels. He is a member of several national and international economic and accounting forums and trade unions, as well as an honorary professor who has lectured in many German universities and is an expert in Dutch and German economic relations.


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