The main objective of the research is to identify and measure the effectiveness of the implementation of IFRS adoption and the corporate governance policies in Saudi Arabia. The research is a quantitative research work that is based on the actual data collected from the Saudi Stock exchange. The data is available on the open source website within the available period of 2015-2018. The data obtained from the Saudi Stock exchange database is basically a pooled data that combine all type of cross-sectional data and the series data (Verriest, Gaeremynck, & Thornton, 2013).

The research is based on descriptive statistics and measurement variables. The dependent variable is the performance of the firm with different types of performance such as financial, marketing and operational performance. The three performance models in the current study are equity, return on assets, financial performance, and operational performance. The independent variables are the ownership and corporate governance dimension (GCI). The research will consider adoption conditions for the new standards. The second voluntary adopter is not considered for Saudi Arabia (Verriest, Gaeremynck, & Thornton, 2013).

The research interprets corporate governance measures for the monitoring and controlling of executives. The governance data is provided by the risk metrics databases. The characteristics of corporate governance from the databases are related to the board of directors (BFUNCTION), the effectiveness of the audit committee (AUDIT), an independent board of directors (BINDEP).

The functioning of the board of directors determines the effectiveness of functions, management potential, monitoring, and replacement of key executives (Verriest, Gaeremynck, & Thornton, 2013). The aggregated index for corporate governance is used as empirical evidence. these three separate variables are the indicators. The data for each variable will cover the timeline period for three years i.e. 2003, 2004, and 2005 so that impact of IFRS could be examined within these years. The first stage regression of the individual is considered in the analysis.

The IFRS adoption will work on two different perspectives including transparency of IFRS from local GAAP and IFRS and compliance with some specific IFRS. The reconciliation is the sum of some indicators including restated items, number of years, number of pages, and restatement of format.

The residual equation and regression analysis will be used for the analysis of IFRS restatements. The positive coefficient will be used to disclose the marginal coefficient for the local GAAP and aligned IFRS relation will be analyzed. In these models, the controlling factors will work based on the corporate governance mechanism. The positive coefficient is associated with the variable "GOVERNANCE" and the negative coefficient is associated with the variable LNDISTANCE. The expected results show that mandatory IFRS items are strongly related to governance and transparent policies.

The descriptive statistics are used for the various indicators of earning management, ownership concentration, earnings persistence, and controls. The impact of ownership concentration and IFRS adoption are analyzed. The present results show a moderating effect on the earning management and persistence. The other parameters are loss avoidance and smoothing conditions.

1.      The present study recommends that corporate governance regulations should be implemented strictly in Saudi Arabia. The Saudi exchange will increase up to higher governance adoption (Verriest, Gaeremynck, & Thornton, 2013).

2.      The capital market authority is supposed to have complete attention for the ownership concentration and to avoid the controlling factors in major shareholders.