قياس أثر التبني الإلزامي لمعايير التقرير المالي الدولية على خطر انهيار أسعار أسهم الشركات السعودية

Abstract EN

This &udy aims to present an initial assessment evidence for decision of mandatory adoption of International Financial Reporting Standard (IFRS) in Saudi Arabia with the beginning of 2017.

This assessment is achieved by Sudying the impact of this mandatory IFRS adoption on Sock price crash risk.

The &udy was applied to the quarterly data of the companies of the basic materials sector during five preceding and subsequent quarterly periods.

The impact of audit quality, accruals and short-term debt on this relationship also examined.

The &udy found that the mandatory adoption of IFRS significantly reduces &ock price crash risk.

Additionally, with mandatory adoption of IFRS, both audit quality and accruals significantly reduce this risk, while short-term debt insignificantly increases this risk.

These findings help both practitioners and policymakers in improving the application of IFRS and the quality of external audit services, and give more attention to accruals and short-term debt, in the way to improve capital market response and reduce Sock price crash risk in Saudi Arabia.