Impact of Implementation of International Financial Reporting Standards-9 on Profitability and Dividend Payouts Ratio of Pakistani Banks

Abstract

The objective of this paper is to analyze the impact of the International Financial Reporting Standards-IFRS-9 implementation on earnings and dividend payouts ratio of Pakistani banks. The data is collected from the yearly financial reports of banks from 2008 to 2020. For that purpose, panel regression method is utilized. The study reveals, a positive relation among the IFRS-9 and earnings of banks in Pakistan. While, there is negative association among the IFRS-9 and dividend payouts ratio of banks in Pakistan. The Institute of Chartered Accountant of Pakistan (ICAP) may provide training and development program for auditors and other related members, thereby significantly improving the implementation of IFRS 9 in banking sector of Pakistan. Therefore, this study contributes for the regulators, Institute of Chartered Accountants of Pakistan (ICAP), Federal Board of Revenue (FBR), auditors, investors and other stakeholders of banking sector of Pakistan. This study has not been investigated before as per my knowledge.