Financial Crises and Accounting Reforms: Evidence from Pakistan

This study aims at searching whether changes in Accounting disclosures and adoption of Accounting Standards (hereafter referred to as Accounting Reforms) should comply fully to the International Accounting Standards Board (IASB) or according to the necessityfor Pakistan. In answering this question, first we have studied the relationship of Pakistan’s Accounting Reforms with Global and International Financial Crises. To evaluate their linkages, the Binary Choice Model has been used for six decades data. In our analysis through EViews, Financial Crises and Gross Domestic Product (GDP) growth are taken as independent variables and Accounting Reforms as dependent variable. Our results demonstrate that Accounting Reforms have significant relationship with Financial Crises in the case of Pakistan and we are suggesting that the Accounting Reforms in Pakistan should be made according to its own needs.