arbiter
JournalsAccount

Does earnings volatility mediate the relationship between IFRS 15 and firm value? Evidence from emerging markets

Karim Mansour & Khaled Hussainey

Journal of Applied Accounting Research2026https://doi.org/10.1108/jaar-07-2025-0350article
AJG 2ABDC B
Weight
0.50

Abstract

Purpose The purpose of this study is to (1) examine the influence of IFRS 15 on firm value (FV) in Egypt and (2) explore the mediating role of earnings volatility (EV) in this relationship. Design/methodology/approach The analysis in this study is based on 113 Egyptian firms, covering the period from 2018 to 2023, with a total of 678 firm-year observations. To ensure robust empirical findings, this study employs Generalised Method of Moments (GMM) and Structural Equation Modelling (SEM) as analytical techniques. Findings Based on the signalling and agency theories, the results show that IFRS 15 exerts a direct positive influence on FV. Additionally, IFRS 15 decreases EV, which, in turn, adversely impacts FV. Moreover, the results suggest that EV serves as a mediator in the relationship between IFRS 15 and FV. Robustness analyses support the reliability of these findings. Further empirical tests reveal that IFRS 15 plays a moderating role, mitigating the negative nexus between EV and FV. Additionally, Sectoral analysis shows that the relationships among IFRS 15, EV, and FV differ across industries, indicating that IFRS 15's impact is industry-specific. Research limitations/implications This study is constrained by a relatively small sample size and a lack of analysis across other countries within emerging markets. Practical implications This study enhances the understanding of IFRS 15 adoption by examining its impact on FV and the mediating role of EV. It contributes to academic discourse and aids standard setters, regulators, and practitioners in assessing IFRS adoption across emerging markets. Additionally, it provides valuable insights for market participants, supporting informed investment decisions and risk evaluation. Originality/value This study offers a unique contribution by addressing the scarcity of research on IFRS 15 and FV, particularly in emerging markets, amid ongoing debate regarding its impact. It fills a critical gap, while research on the mediating role of EV in this relationship remains limited.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1108/jaar-07-2025-0350

Or copy a formatted citation

@article{karim2026,
  title        = {{Does earnings volatility mediate the relationship between IFRS 15 and firm value? Evidence from emerging markets}},
  author       = {Karim Mansour & Khaled Hussainey},
  journal      = {Journal of Applied Accounting Research},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/jaar-07-2025-0350},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Does earnings volatility mediate the relationship between IFRS 15 and firm value? Evidence from emerging markets

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.