Abstract
The study aimed to find out the relationship between the application of international financial reporting standards (IFRS) and the accounting information quality (AIQ) in Jordan. The research data was collected from 59 industrial companies listed on the Amman Stock Exchange (ASE) between 2010 and 2018. Panel data was used to measure an independent variable (the application of IFRS), and a questionnaire (a 5-point Likert scale) was applied to measure a dependent variable (AIQ). Multiple regression was used to test hypotheses. The study concluded that the application of IFRS in terms of earnings management and trading volume had a positive relationship with AIQ. Finally, the study recommended validating the transparency of financial reporting to improve the efficiency of the Jordanian financial market.
Highlights
The study of the impact of international financial reporting standards (IFRS) application on accounting information quality (AIQ) is a topical issue in order to find out the results of the application, both positive and negative, on the Jordanian capital market, and the impact on economic growth in Jordan
The study aimed to find out the relationship between the application of international financial reporting standards (IFRS) and the accounting information quality (AIQ) in Jordan
It provides high liquidity in the sense that a stock trader in the Jordanian financial market has the ability to liquidate his shares at any moment, that is, to convert them into cash, because if the trading volume is low, the company cannot sell its shares at the time it wants
Summary
The study of the impact of IFRS application on AIQ is a topical issue in order to find out the results of the application, both positive and negative, on the Jordanian capital market, and the impact on economic growth in Jordan. The success of capital markets depends directly on the quality of the accounting system and financial disclosure that investors trust The variability of information may be more significant on the ASE compared to developed markets, because the sources of information are fewer; this makes accounting information more important to ASE participants than in more developed markets (Lopes, 2002)
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