IFRS9 ADOPTION FACTORS, ITS IMPACT ON DISCLOSURE QUALITY, CORPORATE GOVERNANCE, AND THE VALUE OF GULF BANKS.

Abstract

 This work aims at analyzing how the IFRS9 was implemented and affected the disclosure quality and the governance mechanisms. Moreover, it will attempt to provide an evaluation of the impacts of IFRS9 on the banking institutions through comparison and analysis of published annual reports before and after the implementation of standard. The results prove that implementation of IFRS9 significantly impacts the quality of disclosures, governance practice and financial reporting. However, the sample banks have a requirement to streamline their operating models to meet fully the requirement of IFRS9 (both in letter and spirit). The study also shows that IFRS9 has some positive effects on the governance practices and helps in meeting the expectations of the stakeholders. The second step of the quantitative study is the outcome of the PLS SEM analysis based on 238 respondents working in similar banks and using a questionnaire-based method, which shows that the government policy is the most significant determinant in IFRS adoption and the next consideration is the ease of implementation and perceived benefits. Conversely, legal requirements did not have any considerable influence. Lastly, the research provides some policy implications on the policy-makers in the banking industry.