Title: Compliance with IFRS for related party transactions across eight African countries: do corruption and government quality matter?

Authors: Yosra Mnif Sellami; Hela Borgi

Addresses: Department Accounting, Taxation and Law, Higher Institute of Business Administration, Airport road, 3018 Sfax, University of Sfax, Tunisia ' Department Accounting, College of Business Administration, Princess Nourah bint Abdulrahman University, Airport Road, King Khalid International Airport, 11671, Riyadh, Saudi Arabia

Abstract: This paper tries to investigate two research questions in eight African countries. First, we examine the effect of country-level corruption culture on compliance with the International Accounting Standard 24 "Related Party Disclosures" (CRPD). Second, we examine the effect of country-level government quality on CRPD. Focusing on a sample of 537 listed African firms over the 2012-2014 period, we use panel regressions. Our results show that corruption is negatively associated with CRPD, while government quality seems not to play a key role in explaining CRPD when corruption is simultaneously considered. This paper contributes to the compliance literature by examining the effect of corruption and government quality on CRPD in African countries, an understudied context where the corruption and the IFRS enforcement are a big problem. It also contributes to the corruption literature that examines the effect of corruption on firm behaviours.

Keywords: corruption; IFRS; International Financial Reporting Standards; related party; compliance; IAS 24; government quality.

DOI: 10.1504/IJAAPE.2020.106780

International Journal of Accounting, Auditing and Performance Evaluation, 2020 Vol.16 No.1, pp.81 - 107

Received: 24 Aug 2018
Accepted: 21 Dec 2019
Published online: 20 Apr 2020 *

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