IMPACT OF IFRS ADOPTION ON CORPORATE GOVERNANCE: AN ANALYSIS ON SELECTED INDIAN COMPANIES

Abstract

Purpose: This research seeks to show how the adoption of International Financial Reporting Standards (IFRS) has an impact on corporate governance (CG) by affecting shareholders’ rights, roles, and equitable treatment, as well as disclosures, transparency, and board duties. Design/methodology/approach: Using a sample of four companies, the author analyses IFRS adoption's effect on corporate governance through descriptive statistics, and the paired t-test is used to examine whether there is a significant difference between pre-IFRS and post-IFRS corporate governance compliance. Findings: This paper reveals that, presently, all the selected companies are following CG compliance in an effective manner, but due to some further concerns, these can often be moved to the ‘Leadership’ category. Additionally, disclosures regarding CG are significantly positively influenced by IFRS convergence. Practical Implications: This paper provides an accurate and deep understanding to users who are interested in learning more about how disclosures made through Ind.AS regulations affect CG compliance and improve data transparency. Moreover, it is also valuable for policymakers in developing guidelines that will allow for more thorough disclosures. Originality/value: This paper contributes to the literature of IFRS convergence in India by providing rational analysis of selected companies' CG scores and how IFRS adoption affects them.