Article: Did the mandatory adoption of International Financial Reporting Standards affect earnings quality in Sub-Saharan Africa? Journal: Afro-Asian Journal of Finance and Accounting (AAJFA) 2026 Vol.16 No.3 pp.277 - 299 Abstract: Our study investigates the effects of mandatory IFRS adoption on earnings quality in Sub-Saharan Africa, with a focus on Ghana and Kenya. Given the agency conflict, a high level of IFRS compliance is anticipated to enhance transparency and disclosure, leading to improved earnings quality in the post-adoption period. Employing an explanatory research design and random OLS techniques, we analysed data from 495 firm-year observations from listed non-financial firms on the Nairobi Stock Exchange and Ghana Stock Exchange for the period 2010-2020. The results indicate a strong correlation between IFRS adoption and earnings quality, supporting predictions about future earnings. Based on these findings, the study recommends that policymakers strengthen the corporate reporting environment by promoting the widespread adoption of high-quality international reporting standards, such as IFRS for SMEs and IPSAS, across various sectors. This research contributes to the existing literature by informing listed firms in Ghana and Kenya of the post-IFRS adoption impact on their earnings quality, which can help guide policymaking on borrowing and earnings management practices. This study serves as a foundation for future research aiming for a broader investigation across Sub-Saharan Africa. Inderscience Publishers - linking academia, business and industry through research

Title: Did the mandatory adoption of International Financial Reporting Standards affect earnings quality in Sub-Saharan Africa?

Authors: Musah Mohammed Saeed; Manisha Kumari; Obeng Hollack

Addresses: Paari School of Business (PSB), SRM University-AP, Andhra Pradesh, India ' Paari School of Business (PSB), SRM University-AP, Andhra Pradesh, India ' Faculty of Business Studies, Garden City University College, Kenyase, Kumasi, Ghana

Abstract: Our study investigates the effects of mandatory IFRS adoption on earnings quality in Sub-Saharan Africa, with a focus on Ghana and Kenya. Given the agency conflict, a high level of IFRS compliance is anticipated to enhance transparency and disclosure, leading to improved earnings quality in the post-adoption period. Employing an explanatory research design and random OLS techniques, we analysed data from 495 firm-year observations from listed non-financial firms on the Nairobi Stock Exchange and Ghana Stock Exchange for the period 2010-2020. The results indicate a strong correlation between IFRS adoption and earnings quality, supporting predictions about future earnings. Based on these findings, the study recommends that policymakers strengthen the corporate reporting environment by promoting the widespread adoption of high-quality international reporting standards, such as IFRS for SMEs and IPSAS, across various sectors. This research contributes to the existing literature by informing listed firms in Ghana and Kenya of the post-IFRS adoption impact on their earnings quality, which can help guide policymaking on borrowing and earnings management practices. This study serves as a foundation for future research aiming for a broader investigation across Sub-Saharan Africa.

Keywords: IFRS adoption; earnings quality; financial reporting; International Accounting Standards; IFRS; agency theory; Sub-Saharan Africa; Ghana; Kenya.

DOI: 10.1504/AAJFA.2026.153558

Afro-Asian Journal of Finance and Accounting, 2026 Vol.16 No.3, pp.277 - 299

Received: 18 Jul 2024
Accepted: 15 Oct 2024
Published online: 14 May 2026 *

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Title: Did the mandatory adoption of International Financial Reporting Standards affect earnings quality in Sub-Saharan Africa?

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