Empirically Exploring Investors’ Perceptions Toward IFRS Adoption: Further Evidence from Saudi Arabia

Authors and Affiliations

  • Khulud Khaled Alshafi Accounting Department, College of Business Administration, King Saud University, ‎Riyadh 11451, Saudi Arabia
  • Prof. Khalid Al-Adeem Accounting Department, College of Business Administration, King Saud University, ‎Riyadh 11451, Saudi Arabia

About this article

Download PDF

Keywords:

IFRS; Saudi Arabia; Investors’ Perceptions

Abstract

This study investigates investors’ perceptions toward IFRS adoption in Saudi Arabia ‎and whether investors in the Saudi Stock Market (Tadawul) value IFRS-based ‎corporate reports for their decision-making purposes. The study employs a web-based ‎questionnaire. The results reveal that investors in the Saudi Stock Market rely on the ‎annual report as an essential source of information. However, they are indecisive ‎regarding the impact of IFRS on the readability of corporate reports. We found that ‎investors are aware of the major features and benefits of IFRS. For instance, they agree ‎on the international comparability of corporate reports to encourage foreign investments ‎as they support fair value measurements for equity valuation. On the other hand, ‎investors comprehend the potential consequences of IFRS adoption, especially in the ‎national context. Investors do not expect uniformity of practice under IFRS. They ‎realize that the inherent latitude in IFRS as principle-based standards undermines the ‎cross-country comparability and gives rise to earnings management. Investors also ‎recognize the threats to the reliability of fair value models. Investors have demonstrated ‎an understanding of the general impact of IFRS adoption on corporate reporting‎.

References

[1] Abdelqader, M., Nimer, K., & Darwish, T. K. (2021). IFRS compliance in GCC countries: Do corporate governance mechanisms make a difference? International Journal of Disclosure and Governance, 18(4), 411–425. https://doi.org/10.1057/s41310-021-00123-3.

[2] Agoglia, C. P., Doupnik, T. S., & Tsakumis, G. T. (2011). Principles-Based versus Rules-Based Accounting Standards: The Influence of Standard Precision and Audit Committee Strength on Financial Reporting Decisions. The Accounting Review, 86(3), 747–767. https://doi.org/10.2308/accr.00000045.

[3] Ahmed, A. S., Neel, M., & Wang, D. (2013). Does mandatory adoption of IFRS improve accounting Quality? Preliminary evidence. Contemporary Accounting Research, 30(4), 1344–1372. https://doi.org/10.1111/j.1911-3846.2012.01193.x.

[4] Ahmed, K., Chalmers, K., & Khlif, H. (2013). A meta-analysis of IFRS adoption effects. The International Journal of Accounting, 48(2), 173-217. https://doi.org/10.1016/j.intacc.2013.04.002.

[5] Al Ashikh, A. I. (2012). Testing the weak-form of efficient market hypothesis and the day-of-the-week effect in Saudi stock exchange: Linear ap-proach. International Review of Business Research Papers, 8(6), 27-54.

View more references (134)

[6] Alabaas (2008). Effect of information about audit quality and audit reputation on Saudi stock market: An empirical study for market efficiency. Ac-counting Research, 9(1), 9-26.

[7] Al-Adeem K. R. (2021). Properly identified imaginary needs, an inaccurately proposed methodology: The case of Rochester School of Accountan-cy’s positive accounting methodology. Accounting and Management Information Systems 20: 607-645. https://doi.org/10.24818/jamis.2021.04003.

[8] Al-Adeem KR (2023c), Accounting as a sustainable crafted technology for human exchange activities with nature: A defense of accounting continui-ty. Frontiers in Environmental Science. 11:1165247. https://doi.org/10.3389/fenvs.2023.1165247.

[9] Al-Adeem, K. (2015). Sustaining Mutual and Market Interests in the Auditor and Corporate Client Relationship. A Refereed Proceeding. American Accounting Association Mid-Atlantic Region Meeting. April 23–25, Cherry Hill, NJ.

[10] Al-Adeem, K. R. (2017a). A need for theorizing corporation: An accounting perspective. International Journal of Accounting Research. 5(2): 166.

[11] Al-Adeem, K. R. (2019a, March). Book review of: Understanding Mattessich and Ijiri: A Study of Accounting Thought. European Accounting As-sociation, EAA Newsletter. Retrieved from:https://mailchi.mp/f9c88eb16bd9/eaa-newsletter-march-2019-2#Have%20you%20read.

[12] Al-Adeem, K. R. (2019b), Who decides what is publishable? Empirical study on the influence of a journal’s editorial board on the observed paradigm shift in US academic accounting research. The North American Accounting Studies, 2(1), 1-21.

[13] Al-Adeem, K. R. (2020b). Cultural challenges for countries implementing International Financial Reporting Standards without contributing to their creation. African Journal of Accounting, Auditing and Finance, 7(1). https://doi.org/10.1504/AJAAF.2020.109199.

[14] Al-Adeem, K. R. (2022a). Revisiting the role of accounting from ancient to contemporary times: An attempt to evaluate the role of corporate account-ing. Strategies in Accounting and Management, 3(4), 1-13. https://doi.org/10.31031/SIAM.2022.03.000569.

[15] Al-Adeem, K. R. (2022b). Reconceptualizing the Management–Auditor Relationship by Applying the General Partnership Contract to Challenge In-dependence. Journal of Accounting, Business and Management (JABM), 29(1), 155-193. https://doi.org/10.31966/jabminternational.v29i1.792.

[16] Al-Adeem, K. R., & Al-Sogair, I. (2019). Effectiveness of the board of directors in monitoring executive management: Preliminary evidence from Saudi Arabia. Journal of Governance and Regulation, 8(3), 72-82. https://doi.org/10.22495/jgr_v8_i3_p7.

[17] Al-Amari, S.R. (1989). The Development of Accounting Standards and Practices in the Kingdom of Saudi Arabia, PhD Thesis, The University of Glasgow, Scotland.

[18] Albarrak, T. (2011). Value relevance and predictive ability of financial statement information: the case of Saudi Arabia, PhD dissertation (Portsmouth Business School, University of Portsmouth).

[19] Al-Faryan, M. A. S., & Dockery, E. (2020). Testing for efficiency in the Saudi stock market: Does corporate governance change matter? Review of Quantitative Finance and Accounting, 55(3), 789-812.

[20] Alharbi, A. M. & Al-Adeem, K. R. (2022). A defense on accounting discretion: An empirical inquiry based on users’ Awareness. Financial Markets, Institutions and Risks, 6(3), 26-39. https://doi.org/10.21272/fmir.6(3).26-39.2022.

[21] Al-Hazzani, M. M., & Al-Adeem, K. (2020). Do Corporations’ Annual Reports Address Shareholders as Proprietors? Evidence from Saudi Arabia. International Journal of Auditing and Accounting Studies, 9(2), 175-192.

[22] Alhomaid, I. (2009). Accounting Theory. Riyadh, Kingdom of Saudi Arabia: Al Obaikan Library.

[23] Almansour, M. S. (2019). Challenges and opportunities from adopting IFRS in Saudi Arabia: The case of the banking sector (PhD dissertation). Not-tingham Trent University.

[24] Almotairy, O. S., & Stainbank, L. J. (2014). Compliance with international education standards in Saudi Arabia: Policy and educational implica-tions. Journal of Business Studies Quarterly, 5(4), 5–20.

[25] Alnodel, A. A. (2015). Does mandatory IFRS adoption improve market efficiency in emerging stock markets? Evidence from Saudi Arabia. Global Review of Accounting and Finance, 6(2), 1-15. https://doi.org/10.21102/graf.2015.09.62.01.

[26] Alnodel, A. A. (2018) The impact of IFRS adoption on the value relevance of accounting information: evidence from the insurance sector, Interna-tional Journal of Business and Management 13, 138–148. https://doi.org/10.5539/ijbm.v13n4p138.

[27] Alomair, A., Farley, A., & Yang, H. H. (2022). The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia. Ac-counting & Finance, 62(3), 2839–2878. https://doi.org/10.1111/acfi.12902.

[28] Al-Razeen, A., & Karbhari, Y. (2004). Users’ perception of corporate information in Saudi Arabia: An empirical analysis. International Journal of Commerce and Management, 14(3/4), 41–57. https://doi.org/10.1108/10569210480000183.

[29] Al-Rehaily, A.S.F. (1992), The evolution of accounting in Saudi Arabia: a study of its relevance to the social and economic environment, PhD Thesis. The University of Hull, pp.1-528.

[30] Al-Salman, A. (2007). Relation of firm market values with reported financial figures in emerging markets. Accounting Research, 8(2), 65-104.

[31] Alsalman, A. M. (2003). The value relevance of accounting numbers and the implications for international accounting standards harmonization: evi-dence from Saudi Arabia and Kuwait, PhD dissertation (Florida Atlantic University).

[32] Alshiban, R. F., & Al-Adeem, K. R. (2022). Empirically Investigating the Disclosure of Nonfinancial Information: A Content Study on Corporations Listed in the Saudi Capital Market. Journal of Risk and Financial Management, 15(6), 251. https://doi.org/10.3390/jrfm15060251.

[33] Alsuhaibani, A. (2012). The expected impact of IFRS adoption on Saudi Arabia base on lessons from other countries: A focus on the telecommunica-tion business. Procedis-Social and Behavioral Sciences, 62, 1190-1198. https://doi.org/10.1016/j.sbspro.2012.09.204.

[34] Alturki, K. H. (2014). Voluntary disclosure by Saudi companies. Research Journal of Finance and Accounting, 5(20), 77–94.

[35] Alzahrani, A. A. (2010). Are stock returns predictable in the Saudi market? An investigation of returns around earnings announcements. International Review of Business Research Papers, 6(4), 1-17.

[36] Alzeban, A. (2016). Factors influencing adoption of the international financial reporting standards (IFRS) in accounting education. Journal of Interna-tional Education in Business, 9(1), 2–16. https://doi.org/10.1108/JIEB-10-2015-0023.

[37] Armstrong, C. S., Barth, M. E., Jagolinzer, A. D., & Riedl, E. J. (2010). Market reaction to the adoption of IFRS in Europe. The Accounting Review, 85(1), 31–61. https://doi.org/10.2308/accr.2010.85.1.31.

[38] Babalyan, L. (2001). Association Between Accounting Earnings and Stock Returns as a Measure of Value Relevance of Accounting Standards: Em-pirical Evidence from the Swiss Market. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.301923.

[39] Ball, R. (2006). International Financial Reporting Standards (IFRS): pros and cons for investors. Accounting and Business Research, 36(sup1), 5–27. https://doi.org/10.1080/00014788.2006.9730040.

[40] Ball, R. (2013). Accounting Informs Investors and Earnings Management is Rife: Two Questionable Beliefs. Accounting Horizons, 27(4), 847–853. https://doi.org/10.2308/acch-10366.

[41] Ball, R., & Brown, P. (1968). An Empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2), 159. https://doi.org/10.2307/2490232.

[42] Barth, M. E. (1994). Fair value accounting: Evidence from investment securities and the market valuation of banks. The Accounting Review, 69(1), 1-25. https://doi.org/10.2308/TAR-9410256358.

[43] Barth, M. E., & Landsman, W. R. (2010). How did Financial Reporting Contribute to the Financial Crisis? European Accounting Review, 19(3), 399–423. https://doi.org/10.1080/09638180.2010.498619.

[44] Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting: an-other view. Journal of Accounting and Economics, 31(1–3), 77–104. https://doi.org/10.1016/S0165-4101(01)00019-2.

[45] Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467–498. https://doi.org/10.1111/j.1475-679X.2008.00287.x.

[46] Beaver, W. (2002). Review of the book Accounting Theory: An Information Content Perspective by John A. Christensen & Joel S. Demski, Europe-an Accounting Review. 11 (3), 631–633.

[47] Beaver, W. H. (1968). The information content of annual earnings announcements. Journal of Accounting Research, 6, 67-92. https://doi.org/10.2307/2490070.

[48] Beaver, W. H., McNichols, M. F., & Wang, Z. Z. (2018). The information content of earnings announcements: New insights from intertemporal and cross-sectional behavior. Review of Accounting Studies, 23(1), 95-135. https://doi.org/10.1007/s11142-017-9417-z.

[49] Belkaoui, A. (1995). The Cultural Shaping of Accounting. Quorum Books, USA.

[50] Belkaoui, A.R. (2004). Accounting Theory (5th ed.), London: Thomson Learning.

[51] Berle, A. A., & Means, G. C. (1932). The modern corporation and private property. Macmillan.

[52] Boedker, C., & Chua, W. F. (2013). Accounting as an affective technology: A study of circulation, agency and entrancement. Accounting, Organiza-tions and Society, 38(4), 245-267. https://doi.org/10.1016/j.aos.2013.05.001.

[53] Brearey, C. H., & Al-Adeem, K. R. (2019). Thinking beyond the black box: Sterling shows accountants the way toward relevance. Journal of Fi-nance and Accountancy, 26, 1-20.

[54] Callao, S., Jarne, J. I., & Laínez, J. A. (2007). Adoption of IFRS in Spain: Effect on the comparability and relevance of financial reporting. Journal of International Accounting, Auditing and Taxation, 16(2), 148–178. https://doi.org/10.1016/j.intaccaudtax.2007.06.002.

[55] Capital Market Authority – Corporate Governance Regulations. Retrieved from: https://cma.gov.sa/en/RulesRegulations/Regulations/Documents/CorporateGovernanceRegulations1.pdf (accessed on 25 September 2025).

[56] Capital Market Authority (CMA). Foreign Investors’ Ownership Value in the Saudi Capital Market During the Last 5 Years. Retrieved from: https://cma.gov.sa/en/MediaCenter/PR/Pages/ForeignInvestors%E2%80%99OwnershipValueintheSaudiCapitalMarketDuringtheLast5Years.aspx (ac-cessed on 11 May 2025).

[57] Chambers, R. J. (1960). The conditions of research and accounting. Journal of Accountancy, pp. 33-38.

[58] Chambers, R. J. (1984). Accounting‐“one of the finest inventions of the human spirit”. Contemporary Accounting Research, 1(1), 1-22. https://doi.org/10.1111/j.1911-3846.1984.tb00365.x.

[59] Chatfield, M. (1977). A History of Accounting Thought (Revised ed.), R.E. Krieger Pub. Co, Huntington, New York, USA.

[60] Chehade, S., & Prochazka, D. (2024). Value relevance of accounting information in an emerging market: The case of IFRS adoption by non-financial listed firms in Saudi Arabia. Journal of Accounting in Emerging Economies, 14(1), 220-246. https://doi.org/10.1108/JAEE-06-2022-0165.

[61] Choi, F., & Levich, R. (1991). International accounting diversity: Does it affect market participants? Financial Analysts Journal, 47(4), 73-83. https://doi.org/10.2469/faj.v47.n4.73.

[62] Coetsee, D. (2010). The role of accounting theory in the development of accounting principles. Meditari Accountancy Research. 18 (1). 1-16. https://doi.org/10.1108/10222529201000001.

[63] Cowan, T. K. (1968). A pragmatic approach to accounting theory. The Accounting Review. 43(1): 94-100. https://doi.org/10.2308/TAR-4484081.

[64] Davidson, H. J., & Trueblood, R. M. (1961). Accounting for decision making. The Accounting Review, 36(4), 577-582. https://doi.org/10.2308/TAR-7097578.

[65] DR Scott. (1929). Conservatism in inventory valuation. The Accounting Review. Papers and Proceedings of the Tenth Annual Meeting of the Ameri-can Association of University Instructors of Accounting. 1(1):18–22. https://doi.org/10.2308/TAR-8593889.

[66] Ebaid, I. E. (2023). IFRS adoption and the readability of corporate annual reports: evidence from an emerging market. Future Business Journal, 9(1), 80. https://doi.org/10.1186/s43093-023-00244-x.

[67] Ebaid, I. E. S. (2021). Does IFRS implementation improve qualitative characteristics of accounting information: Evidence from Saudi commercial banks. Journal of Advanced Research in Economics and Administrative Sciences, 2(1), 17–27. https://doi.org/10.47631/jareas.v2i1.193.

[68] El-Diftar, D., & Elkalla, T. (2019). The value relevance of accounting information in the MENA region. Journal of Financial Reporting & Account-ing, 17(3), 519–536. https://doi.org/10.1108/JFRA-09-2018-0079.

[69] Financial Accounting Standards Board (FASB) (n.d.). Conceptual framework. Retrieved from https://fasb.org/the-conceptual-framework (accessed on 8 September 2025).

[70] Fox, A., Hannah, G., Helliar, C., & Veneziani, M. (2013). The costs and benefits of IFRS implementation in the UK and Italy. Journal of Applied Accounting Research, 14(1), 86–101. https://doi.org/10.1108/09675421311282568.

[71] Gaffikin, M. J. R. (1987). The methodology of early accounting theorists. Abacus, 23(1), 17–30. https://doi.org/10.1111/j.1467-6281.1987.tb00136.x.

[72] García, N. (2017), Understanding Mattessich and Ijiri: A study of accounting thought. Emerald Publishing. https://doi.org/10.1108/S1479-3504201721.

[73] Gleeson-White, J. (2011). Double entry: How the merchants of Venice created modern finance. WW Norton & Company.

[74] Gordon, L. A., Loeb, M. P., & Zhu, W. (2012). The impact of IFRS adoption on foreign direct investment. Journal of Accounting and Public Policy, 31(4), 374–398. https://doi.org/10.1016/j.jaccpubpol.2012.06.001.

[75] Gore, P. (1992). The FASB Conceptual Framework Project 1973-1985: An Analysis. Manchester, UK: Manchester University Press.

[76] Gray, S. J. (1988). Towards a theory of cultural influence on the development of accounting systems internationally. Abacus, 24(1), 1–15. https://doi.org/10.1111/j.1467-6281.1988.tb00200.x.

[77] Hendriksen, E. S. & Breda, M. (2001). Accounting Theory. McGraw-Hill: New York.

[78] Hofstede, G., & Bond, M. H. (1988). The Confucius connection: From cultural roots to economic growth. Organizational Dynamics, 16(4), 4–21. https://doi.org/10.1016/0090-2616(88)90009-5.

[79] Holthausen, R. W., & Watts, R. L. (2001). The relevance of the value-relevance literature for financial accounting standard setting. Journal of Ac-counting and Economics, 31(1–3), 3–75. https://doi.org/10.1016/S0165-4101(01)00029-5.

[80] Hopwood, A.G. (1987). The archeology of accounting systems. Accounting, Organizations and Society 12(3): 207–234. https://doi.org/10.1016/0361-3682(87)90038-9.

[81] Horngren, C.T. (1981). Uses and limitations of a conceptual framework, Journal of Accountancy. 151 (4), 86.

[82] Horton, J., & Serafeim, G. (2008). Market reaction to and valuation of IFRS reconciliation adjustments: first evidence from the UK. Review of Ac-counting Studies, 15(4), 725–751. https://doi.org/10.1007/s11142-009-9108-5.

[83] Horton, J., Serafeim, G., & Serafeim, I. (2008). Does mandatory IFRS adoption improve the information environment? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1264101.

[84] Ijiri, Y. (1967). The Foundations of Accounting Measurement: A Mathematical, Economic, and Behavioral. Prentic-Hall Inc, Englewood, NJ.

[85] IASB’s Conceptual Framework for Financial Reporting. Retrieved from: https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/conceptual-framework-for-financial-reporting.pdf (accessed on 11 May 2025).

[86] Jamaani, F., & Roca, E. (2015). Are the regional Gulf stock markets weak-form efficient as single stock markets and as a regional stock market? Re-search in International Business and Finance, 33, 221–246. https://doi.org/10.1016/j.ribaf.2014.09.001.

[87] Jeanjean, T., & Stolowy, H. (2008). Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adop-tion. Journal of Accounting and Public Policy, 27(6), 480–494. https://doi.org/10.1016/j.jaccpubpol.2008.09.008.

[88] Jermakowicz, E. K. (2004). Effects of Adoption of International Financial Reporting Standards in Belgium: The Evidence from BEL-20 Companies. Accounting in Europe, 1(1), 51–70. https://doi.org/10.1080/0963818042000270811.

[89] Jermakowicz, E. K., Prather‐Kinsey, J., & Wulf, I. (2007). The value relevance of accounting income reported by DAX‐30 German companies. Journal of International Financial Management and Accounting, 18(3), 151–191. https://doi.org/10.1111/j.1467-646X.2007.01011.x.

[90] Joos, P. P. M., & Leung, E. (2013). Investor perceptions of potential IFRS adoption in the United States. The Accounting Review, 88(2), 577–609. https://doi.org/10.2308/accr-50338.

[91] Kantor, J., Roberts, C. B., & Salter, S. B. (1995). Financial Reporting Practices in Selected Arab Countries: An Empirical Study of Egypt, Saudi Ara-bia, and the United Arab Emirates. International Studies of Management & Organization, 25(3), 31–50. https://doi.org/10.1080/00208825.1995.11656658.

[92] Khanagha, J. B. (2011). Reform in accounting standards: Evidence from Saudi Arabia. International Journal of Management and Business Research, 1(3), 113–124.

[93] Khurana, I. K., & Kim, M. (2003). Relative value relevance of historical cost vs. fair value: Evidence from bank holding companies. Journal of Ac-counting and Public Policy, 22(1), 19–42. https://doi.org/10.1016/S0278-4254(02)00084-4.

[94] Kieso , D. E., Weygandt, J. J. and Warfield, T D. (2004). Intermediate Accounting (11th ed.).” New York, NY : J. Wiley.

[95] King, T.A. (2006). More Than A Numbers Game: A Brief History of Accounting, John Wiley & Sons.

[96] Kothari, S. (2001). Capital markets research in accounting. Journal of Accounting and Economics, 31(1–3), 105–231. https://doi.org/10.1016/S0165-4101(01)00030-1.

[97] Kotlyar, J. (2008). The advent of the international financial reporting standards: a catalyst for changing global finance, Journal of International Affairs, 62(1), 321–238.

[98] Lamouchi, R. A. (2020). Long memory and stock market efficiency: case of Saudi Arabia. International Journal of Economics and Financial Issues, 10(3), 29–34. https://doi.org/10.32479/ijefi.9568.

[99] Lee, G., & Fargher, N. L. (2010). Did the Adoption of IFRS Encourage Cross-Border Investment? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1686571.

[100] Lee, T. A. (2006a). The FASB and accounting for economic reality. Accounting and the Public Interest, 6(1), 1–21. https://doi.org/10.2308/api.2006.6.1.1.

[101] Lee, T. A. (2006b). Reply to commentary: The FASB and accounting for economic reality—Cunning plans, spinners, and ideologues: Blackadder and Baldrick try accounting for economic reality. Accounting and the Public Interest, 6(1), 45–50. https://doi.org/10.2308/api.2006.6.1.45.

[102] Lee, T.A. (2009). Financial accounting theory. In J.R. Edwards, & S.P. Walker (Eds.), The Routledge Companion to Accounting Theory. (pp. 139-161). Routledge Taylor & Francis Group. https://doi.org/10.1016/j.cpa.2003.06.004.

[103] Lehman, G. (2005). A critical perspective on the harmonization of accounting in a global world. Critical Perspectives on Accounting 16(7): 975-992. https://doi.org/10.1111/acfi.12655.

[104] Li, Z., Liu, Q., & Luo, L. (2013). Principles-based versus rules-based accounting standards and earnings quality: Evidence from China’s mandatory adoption of IFRS. Southern Methodist University, Wuhan University, and Peking University.

[105] Liao, L., Kang, H., & Morris, R. D. (2021). The value relevance of fair value and historical cost measurements during the financial crisis. Accounting and Finance, 61(S1), 2069–2107.

[106] Lin, Z. J., & Chen, F. (2005). Value relevance of international accounting standards harmonization: Evidence from A- and B-share markets in China. Journal of International Accounting Auditing and Taxation, 14(2), 79–103. https://doi.org/10.1016/j.intaccaudtax.2005.08.001.

[107] Littleton AC (1966) Accounting evolution to 1900. Russell and Russell, NY, New York, USA.

[108] Ministry of Commerce – Regulations and Laws Portal. Retrieved from: https://mc.gov.sa/en/Regulations/Pages/details.aspx?lawId=ea0fc797-4127-4667-962d-aec400ee9f72 (accessed on 25 September 2025).

[109] Macintosh, N. B. T. (2006). Accounting—Truth, lies, or ‘‘bullshit ? A philosophical investigation, Accounting and the Public Interest. 6: 22–36. https://doi.org/10.2308/api.2006.6.1.22

[110] Maines, L. A., Bartov, E., Fairfield, P., Hirst, D. E., Iannaconi, T. E., Mallett, R., Schrand, C. M., Skinner, D. J., & Vincent, L. (2003). Evaluating Concepts-Based vs. Rules-Based Approaches to Standard Setting. Accounting Horizons, 17(1), 73–89. https://doi.org/10.2308/acch.2003.17.1.73

[111] Mattessich, R. (1989). Accounting and the input—output principle in the prehistoric and ancient world. Abacus, 25(2), 74-84. https://doi.org/10.1111/j.1467-6281.1989.tb00222.x.

[112] Mattessich, R. (2012). The Beginnings of Accounting and Accounting Thought: Accounting Practice in the Middle East (8000 BC to 2000 BC) and Accounting Thought in India (300 BC and the Middle Ages). Routledge. https://doi.org/10.4324/9780203357675.

[113] Mattessich, R. V. (2009). FASB and social reality—An alternate realist view. Accounting and the Public Interest, 9(1), 39-64. https://doi.org/10.2308/api.2009.9.1.39

[114] McCredie, H. (1957). The theory and practice of accounting. The Accounting Review. 32(2):216-223. https://doi.org/10.2308/TAR-7057296.

[115] Merino, B. D. (1993). An analysis of the development of accounting knowledge: A pragmatic approach. Accounting, Organizations and Society. 18 (2/3): 163-185. https://doi.org/10.1016/0361-3682(93)90032-2.

[116] Nelson, E.G. (1949). Science and accounting. The Accounting Review 24(4): 354-359. https://doi.org/10.2308/TAR-7063012

[117] Niskanen, J., Kinnunen, J., & Kasanen, E. (2000). The value relevance of IAS reconciliation components: empirical evidence from Finland. Journal of Accounting and Public Policy, 19(2), 119–137. https://doi.org/10.1016/S0278-4254(00)00002-8

[118] Nobes, C. W. (2006). The survival of international differences under IFRS: Towards a research agenda. Accounting and Business Research, 36(3), 233–245. https://doi.org/10.1080/00014788.2006.9730023

[119] Nobes, C., & Parker, R. (2016). Comparative international accounting (13th ed.). FT/Prentice Hall.

[120] Nobes, C.W. (1998). Towards a general model of the reasons for international differences in financial reporting. Abacus, 34(2), 162–187. https://doi.org/10.1111/1467-6281.00028.

[121] Nobes, C.W. (2011). International variations in IFRS adoption and practice. London: Association of Chartered Certified Accountants (ACCA).

[122] Nurnberg, H. (2015). Changing perceptions of US standard setters concerning the basic objectives of corporate financial reporting. The Accounting Historians Journal, 42(1), 61-83. https://doi.org/10.2308/0148-4184.42.1.61

[123] Nurunnabi, M. (2014). ‘Does accounting regulation matter?’: An experience of international financial reporting standards implementation in an emerg-ing country. Research in Accounting Regulation, 26(2), 230–238. https://doi.org/10.1016/j.racreg.2014.09.012

[124] Nurunnabi, M. (2017). IFRS and Saudi accounting standards: a critical investigation. International Journal of Disclosure and Governance, 14(3), 191–206. https://doi.org/10.1057/s41310-017-0020-0

[125] Nurunnabi, M. (2018). Perceived costs and benefits of IFRS adoption in Saudi Arabia: An exploratory study. Research in Accounting Regulation, 30(2), 166–175. https://doi.org/10.1016/j.racreg.2018.09.001

[126] Nurunnabi, M., Jermakowicz, E. K., & Donker, H. (2020). Implementing IFRS in Saudi Arabia: Evidence from publicly traded compa-nies. International Journal of Accounting and Information Management, 28(2), 243–273. https://doi.org/10.1108/IJAIM-04-2019-0049

[127] Okafor, O. N., Anderson, M., & Warsame, H. (2016). IFRS and value relevance: Evidence based on Canadian adoption. International Journal of Managerial Finance, 12(2), 136-160. https://doi.org/10.1108/IJMF-02-2015-0033

[128] Peragallo, E. (1938). Origin and evolution of double entry bookkeeping: A study of Italian practice from the fourteenth century. American Institute of Accountants.

[129] Previts, G.J., & Merino, B.D. (1998). A History of Accountancy in the United States: The Cultural Significance of Accounts. Ohio State University Press.

[130] Shao, S., Stoumbos, R., & Zhang, X. F. (2021). The power of firm fundamental information in explaining stock returns. Review of Accounting Stud-ies, 26(1), 1-41. https://doi.org/10.1007/s11142-020-09572-7.

[131] Soderstrom, N. S., & Sun, K. J. (2007). IFRS Adoption and Accounting Quality: A Review. European Accounting Review, 16(4), 675–702. https://doi.org/10.1080/09638180701706732

[132] Statement on Accounting Theory and Theory Acceptance (SATTA). (1977). American Accounting Association Committee on Concepts and Standards for Externals Financial Reports. Sarasota, FL: American Accounting Association.

[133] Van der Meulen, S., Gaeremynck, A., & Willekens, M. (2007). Attribute differences between U.S. GAAP and IFRS earnings: An exploratory study. The International Journal of Accounting, 42(2), 123-142. https://doi.org/10.1016/j.intacc.2007.04.001.

[134] Vatter W. J. (1963). Postulates and principles. Journal of Accounting Research. Autumn 1(2): 179-197. https://doi.org/10.2307/2489854.

[135] Williams, P. F. (2006). Commentary—Accounting for economic reality: Whose reality, which justice? Accounting and the Public Interest, 6(1), 37–44. https://doi.org/10.2308/api.2006.6.1.37.

[136] Williams, P. F., & Ravenscroft, S. P. (2015). Rethinking decision usefulness. Contemporary Accounting Research, 32(2), 763–788. https://doi.org/10.1111/1911-3846.12083

[137] Yip, R. W. Y., & Young, D. (2012). Does mandatory IFRS adoption improve information comparability? The Accounting Review, 87(5), 1767–1789. https://doi.org/10.2308/accr-50192.

[138] Young, J. J. (2006). Making up users. Accounting, Organizations and Society, 31(6), 579-600. https://doi.org/10.1016/j.aos.2005.12.005

[139] Zeff, S. A. (2007). Some obstacles to global financial reporting comparability and convergence at a high level of quality. The British Accounting Re-view, 39(4), 290–302. https://doi.org/10.1016/j.bar.2007.08.001.


How to Cite

Alshafi, K. K., & Al-Adeem, K. R. (2026). Empirically Exploring Investors’ Perceptions Toward IFRS Adoption: Further Evidence from Saudi Arabia. International Journal of Accounting and Economics Studies, 13(2), 645-657. https://doi.org/10.14419/9jxxds29