Download or read book The Effect of Voluntary IFRS Adoption on Information Asymmetry written by Jong-Hoon Kim and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Auditing Ecosystem and Strategic Accounting in the Digital Era written by Tamer Aksoy and published by Springer Nature. This book was released on 2021-06-14 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines current topics and trends in strategic auditing, accounting and finance in digital transformation both from a theoretical and practical perspective. It covers areas such as internal control, corporate governance, enterprise risk management, sustainability and competition. The contributors of this volume emphasize how strategic approaches in this area help companies in achieving targets. The contributions illustrate how by providing good governance, reliable financial reporting, and accountability, businesses can win a competitive advantage. It further discusses how new technological developments like artificial intelligence (AI), cybersystems, network technologies, financial mobility and smart applications, will shape the future of accounting and auditing for firms.​

Download or read book Consequences of Voluntary and Mandatory Fair Value Accounting written by Karl A. Muller and published by . This book was released on 2008 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the causes and consequences of European real estate firms' decisions to provide investment property fair values prior to the required disclosure of this information under International Financial Reporting Standards (IFRS). We find evidence that investor demand for fair value information--reflected in more dispersed ownership--and a firm's commitment to transparency increase the likelihood of providing fair values prior to their required provision under International Accounting Standard 40 - Investment Property. We also find that firms not providing these fair values face higher information asymmetry. However, we fail to find that the relatively higher information asymmetry was reduced following mandatory adoption of IFRS. Rather, we find that differences in information asymmetry largely remain. Taken together, this evidence suggests that common adoption of fair value accounting due to the mandatory adoption of IFRS does not necessarily level the informational playing field.

Download or read book The introduction of IFRS Consequences for investment decisions written by Simon Falcke and published by GRIN Verlag. This book was released on 2020-07-09 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2019 in the subject Business economics - Investment and Finance, grade: 1,0, Otto Beisheim School of Management Vallendar, language: English, abstract: Starting in 2005, the portion of foreign shareholders in the Dax has risen from 45% to 58% in the last decade. In the same year, the regulation of the European Union from 2002 came into effect which required all listed firms in the European Union to report their consolidated accounts in accordance with the International Financial Reporting Standard (IFRS) from 2005 on instead of each countries’ generally accepted accounting standards (GAAP). This is just one example where the volume of investments increased concurrently with the adoption of IFRS. Therefore, the question arises if the mandatory adoption of IFRS in the EU in 2005 or in other cases significantly affected and continues to affect investment decisions among adopters or third parties. In order to better account for differences between different types of investors and investees, we differentiate between retail investors, institutional investors and corporate finance activities. Moreover, we focus on the consequence of IFRS adoption on equity investment decisions as most research appears to focus on the equity instead of the credit market. Additionally, Lourenco & Branco point out that most research which finds no significant effects of IFRS adoption on investment decisions appears to focus on voluntary adoption before 2005. Thus, this paper mainly focuses on mandatory IFRS adoption. In this context, research suggests that mandatory IFRS adopters experience significant capital markets benefits as well as enhanced foreign institutional ownership and enhanced M&A activity. Ultimately, we observe four overarching drivers behind the aforementioned observations that impact investment decisions across different types of investors and investees.

Download or read book The Effects of the IAS IFRS Adoption in the European Union on the Financial Industry written by Vera Palea and published by . This book was released on 2009 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The effect of disclosure level on the cost of equity is a matter of considerable interest and importance to the financial reporting community. In this research, the effects of the IAS/IFRS adoption in Europe on the cost of equity capital relative to the bank industry have been examined. Previous research has shown that the adoption of the IAS/IFRS reduces information asymmetry between investors and firms. Economic theory claims that a commitment to increased level of disclosure reduces the cost of capital component that arises from information asymmetries. This study shows empirically that the increase in the level of disclosure provided by the adoption of the IAS/IFRS in the European Union by Regulation 1606/2002 has led effectively to a lower cost of capital. From a practical point of view, these findings provide evidence that the Regulator's purpose of fostering a cost-efficient functioning of the capital market for firms could be considered as accomplished. Furthermore, they point out that firms which implemented the IAS/IFRS have gained a comparative advantage on the equity market over firms still adopting accounting standards based on the IV and VII European Directives.

Download or read book Who Has Benefited the Most From the Adoption of Ifrs in France Qui a Le Plus Profit de L adoption Des IFRS en France written by Fatima Baalbaki Shibly and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Several studies show that mandatory IFRS adoption resulted in positive capital market impacts for both investors (higher stock liquidity and lower information asymmetry) and firms (lower cost of equity capital). However, the observed impacts are only mean impacts since the characteristics of IFRS adopters are generally ignored. This study aims to fill that gap. Focusing on information asymmetry, we find that French firms did not benefit identically from IFRS adoption. The adoption of the new accounting standards resulted in lower information asymmetry for firms with high analyst following, high voluntary disclosures, and highly specific assets and activities. In contrast, IFRS adoption resulted in higher information asymmetry for firms with low analyst following and low voluntary disclosures. It had no impact on firms with non-specific assets. Surprisingly, we also show that IFRS adoption worsened information asymmetry for firms that suffered from high information asymmetry prior to the adoption of IFRS. Conversely, and paradoxically, firms that had the least to expect from IFRS, because of weak asymmetry prior to the adoption, benefitted the most from the adoption.

Download or read book Disclosure Behavior of European Firms around the Adoption of IFRS written by Michael H. R. Erkens and published by Springer. This book was released on 2016-05-12 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Michael Erkens analyzes the determinants and consequences of information disclosure. He presents an empirical investigation of corporate risk management disclosures of nearly 400 firms from 20 European countries. The results show that countries’ institutional settings and cultural values are predominant factors why firms disclose information on their risk management practices. In another study, the author analyzes the economic consequences associated with the publication of an annual report in English by European firms from non-English speaking countries. He finds that the release of English annual reports attracts more analysts and foreign investors to the firm, and decreases information asymmetries between insiders and outsiders of the firm.

Download or read book Understanding IFRS Adoption written by Noor Houqe and published by . This book was released on 2017 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The adoption of IFRS was intended to improve accounting information quality and ensure greater comparability and transparency of financial reporting around the world. This review has sought to recognize and understand the impacts of IFRS adoption on numerous areas of capitalism. Overall, the implementation of IFRS has been a great success reducing information asymmetry, improving the quality of information for users, enhancing transparency and comparability and positively impacting on capital markets. Generally, the positive effects of IFRS have been associated with firms in strong enforcement regimes that have had incentives to comply. Enforcement of IFRS was a recurring theme throughout the literature reviewed, and consequently, is an area that requires further development. To elaborate, there is a need to develop a mechanism for the enforcement of accounting standards. To this end, there is also a need for collaboration between standard setters and regulatory bodies across the world to maximize the effectiveness of international accounting standards.

Download or read book IAS IFRS written by Vera Palea and published by FrancoAngeli. This book was released on 2006 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Information Asymmetry and Accounting Conservatism Under IFRS Adoption written by Xiaoting (Christy) Lu and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Ias Ifrs and Information Asymmetry written by BANU DINCER and published by LAP Lambert Academic Publishing. This book was released on 2011-01 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work investigated whether the mandatory adoption of IFRSs (International Financial Reporting Standards) had a positive impact on information asymmetry in ISE (Istanbul Stock Exchange). Using the bid-ask spread, trading volume and price volatility models, at first, the effects are investigated by descriptive analysis then the analysis continued using the OLS regression and the two-stage least squares regression method. Both the findings of regression analyses confirmed significant reductions in bid-ask spread subsequent to the adoption of the new accounting standards. The purpose of this study is to extend the spread decomposition literature into the order-driven environment. The dissertation, first research in Turkey to examine the impact of the mandatory adoption of IFRSs on information asymmetry in ISE, contributes to the literature by providing evidence on the economic link between increased accounting disclosure and information asymmetry in an emerging market. It also demonstrates that the accounting regulations permanently reduce long-run information asymmetry risk in capital markets.

Download or read book The Effects of IFRS Adoption in the European Union on Banks Cost of Equity written by Vera Palea and published by . This book was released on 2019 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: The effects of disclosure level on the cost of equity are a matter of considerable interest and importance to the financial reporting community. Economic theory indeed claims that commitment to increased level of disclosure reduces the cost of capital component that arises from information asymmetries. Accordingly, this paper investigates the effects of IFRS adoption in Europe on the cost of equity for the bank industry. In doing so, it performs an event study, which isolates the effects of accounting changes on the cost of capital from institutional and enforcement mechanisms. This study shows that IFRS adoption has exerted, on average, a positive effect on the cost of capital for the bank industry at least in the very short run. Firms adopting IFRS seem to have experienced a lower cost of equity in the period immediately subsequent the release of financial reporting according to the new accounting standard set.

Download or read book Essays on the Economic Consequences of Mandatory IFRS Reporting around the world written by Ulf Brüggemann and published by Springer Science & Business Media. This book was released on 2011-08-31 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ulf Brüggemann discusses and empirically investigates the economic consequences of mandatory switch to IFRS. He provides evidence that cross-border investments by individual investors increased following the introduction of IFRS.

Download or read book Wiley IFRS 2015 written by PKF International Ltd and published by Wiley. This book was released on 2015-02-02 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The globally-sourced guide to the latest IFRS, with practical application advice Wiley IFRS 2015 is a complete guide to the latest International Financial Reporting Standards set forth by the International Accounting Standards Board. Written by an international team of experts in global accounting standards, this guide provides detailed information on the latest changes to the IFRS, with comprehensive coverage of IFRIC interpretations and the tools needed to maintain IFRS-compliance. Readers will find clear, concise explanations delineated by topic for easy navigation, designed for both quick reference in-depth study, with practical advice for implementing IFRS in real-life scenarios. The goal of the IASB is to achieve global convergence of accounting standards, reducing preparation costs and facilitating the assessment of business outcomes. The IFRS are a key part of the strategy, simplifying reporting for multinational corporations and the analysts and investors tasked with evaluating results. Wiley IFRS 2015 details the most recent changes to the standards, with expert guidance toward implementation. Readers will: Grasp the underlying framework of the International Financial Reporting Standards Understand how to interpret the standards and apply them in the real world Follow the Disclosure Checklist to verify completeness and IFRS compliance Learn from the experts when implementing IFRS for the first time More and more countries are either adopting IFRS or adapting local standards to align with those set by the IASB. The standards change annually, and failure to stay up to date can affect business strategy and outcomes, especially when working internationally. Wiley IFRS 2015 provides the latest information and expert guidance, helping practitioners match IFRS to real-world practice.

Download or read book Information Asymmetry in the Post IFRS Adoption Period written by Juniarti and published by . This book was released on 2019 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: Objective - The adoption of IFRS aims to reduce the level of information asymmetry. Prior studies conducted in developed countries prove that the adoption of IFRS enhances transparency and diminishes information asymmetry. However, in developing countries with a low level of openness, limited regulation, and more centralized ownership, the ability of IFRS to reduce information asymmetry remains unknown. To address this issue, this study aims to investigate whether IFRS adoption will reduce information asymmetry in some developing countries in South East Asia.Methodology/Technique - This research is applied in three developing countries: Indonesia, the Philippines and Thailand. Information asymmetry is proxied by the cost of capital using the Easton model (2004) and a bid-ask spread. Listed firms from the three countries are selected as the research sample resulting in 5.313 firm-years for the period between 2007 and 2016.Findings - This study concludes that the adoption of the IFRS decreases information asymmetry in developing countries. These finding confirm that the benefit of the adoption is the same as in developed countries, despite the level of law enforcement in developing countries being lower. Managers, standard authorities and investors must note that the IFRS conveys benefits to the market, which increases transparency by asking lower returns and valuing company stocks appropriately.Novelty - This study examines the benefits of the adoption of the IFRS in reducing information asymmetry in some emerging countries to enhance the generalization of the results from prior studies that are mostly conducted in developed countries.

Download or read book IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information written by Su Yan and published by . This book was released on 2018 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether accounting information of firms that voluntarily adopted IFRS provides incremental information to the capital market, using a sample of Japanese listed firms that disclosed reconciling items from Japanese Generally Accepted Accounting Principles (J-GAAP) to International Financial Reports Standards (IFRS) when they transfer from J-GAAP to IFRS for the first time. In details, applying level models, I tested the incremental content of reconciliation from J-GAAP to IFRS for investors interested in J-GAAP- and IFRS-based accounting numbers, respectively. The results show that the reconciliation items do have incremental information for IFRS-based other than J-GAAP-based accounting information users.

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.