The IFRS convergence influence on financial risk and accounting fraudulent: Evidence from Thailand and Implications for Viet Nam
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Abstract
This paper focuses on whether adopting International Financial Reporting Standards (IFRS) reduces financial risk and accounting fraud. Using 9,194 firm-year observations from Thai-listed non-financial firms between 2011 and 2022, we apply the Beneish M-Score and Altman Z-Score models to detect earnings manipulation and financial distress. The evidence shows that firms reporting under IFRS display lower M-scores, suggesting reduced earnings manipulation. However, IFRS adoption does not have a significant effect on financial distress. This is likely because while IFRS improves transparency and reduces opportunistic reporting, it does not address fundamental financial issues. Overall, our paper provides new evidence on the role of IFRS in enhancing reporting quality in emerging markets and offers implications for financial reporting policy in countries such as Viet Nam.
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© 2026 The authors. This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License.
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