Based on a sample of 353 French listed groups relating to the period 2003–2006, our
results show that the mandatory adoption of IAS/IFRS is associated with a reduction in
the earnings management level. In addition, the independence and the efficiency of the
board of directors, the existence of an independent audit committee, the existence of block
shareholders, the quality of the external audit and the listing on foreign financial markets
are important factors for enforcement of IAS/IFRS in France. Mandatory adoption of IAS/IFRS
has decreased earnings management level for companies with good corporate governance
and those that depend on foreign financial markets.