Does the implementation of IFRS improve transparency regarding the company's financial conditions?: evidence from an emerging market

Purpose This study aims to examine whether there are differences between financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and local accounting standards terms of its ability present the conditions companies listed on Saudi Stock Exchange as one emerging markets. Design/methodology/approach Data variables were obtained from published 67 during period 2014–2019. The addressed research hypotheses by using Altman Z -score model. Both T -test Wilcoxon rank test used investigate significance values individual included model pre- post-IFRS mandatory adoption periods. Findings results revealed a decrease well following IFRS than it was before IFRS, which indicates show more transparently standards. However, showed that these decreases not statistically significant. Research limitations/implications has some limitations, including small sample size result Exchange, As reliance this only five assessing without examining impact other factors may affect companies. Practical implications have important for multiple parties such management, government, investors others an early warning sign enables them take necessary measures actual bankruptcy occurs what costs. Originality/value Although is basic uses information, topic received sufficient attention means benefits adopting especially markets Exchange. first transparency reporting Arabia.