Meta-Analysis of the Impact of Adoption of IFRS on Financial Feporting Comparability, Market Liquidity, and Cost of Capital

2019 ◽  
Author(s):  
Solomon Opare ◽  
Muhammad Nurul Houqe ◽  
Tony van Zijl
Keyword(s):  
Cost Of Capital ◽  
Meta Analysis ◽  
Market Liquidity ◽  
The Impact

Meta‐analysis of the Impact of Adoption of IFRS on Financial Reporting Comparability, Market Liquidity, and Cost of Capital

Abacus ◽  
2021 ◽  
Vol 57 (3) ◽  
pp. 502-556
Author(s):  
Solomon Opare ◽  
Muhammad Nurul Houqe ◽  
Tony van Zijl
Keyword(s):  
Financial Reporting ◽  
Cost Of Capital ◽  
Meta Analysis ◽  
Market Liquidity ◽  
The Impact ◽  
Financial Reporting Comparability

scholarly journals Capital market effects of adoption of IFRS

2021 ◽  
Author(s):  
◽  
Solomon Opare
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Cost Of Capital ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Market Liquidity ◽  
Ifrs Adoption ◽  
Voluntary Adoption ◽  
The Impact ◽  
Financial Reporting Comparability

<p>This thesis examines the impact of adoption of IFRS (International Financial Reporting Standards) on two aspects of the operation of capital markets. Firstly, the impact of adoption of IFRS on financial reporting comparability, market liquidity, and cost of capital. Secondly, the impact of adoption of IFRS on seasoned equity offering (SEO) underperformance.  To examine the impact of adoption of IFRS on financial reporting comparability, market liquidity, and cost of capital, the study used meta-analysis of empirical studies published since 2000. Meta-analysis provides an objective view of the empirical results, in contrast to narrative reviews, which offer subjective conclusions. From meta-analysis of 55 empirical studies with 1,259 effect sizes, the study finds that IFRS adoption has increased financial reporting comparability, market liquidity, and reduced cost of equity. For cost of debt, a decrease is observed only for voluntary adoption. The meta-regression analysis shows how the results differ across mandatory and voluntary adoption of IFRS and that the measurement choices, type of control variables, study design, and strength of empirical results explain the variation in the observed effect of adoption of IFRS.  To examine the impact of adoption of IFRS on SEO underperformance the study analyses a large sample of SEOs from 51 countries over the period 1992-2017. Given that the empirical literature on SEOs has established that information asymmetry contributes to SEO underperformance, it is important to assess whether adoption of IFRS has reduced the uncertainties surrounding SEOs and, thus, subsequent underperformance. The study employs a control sample of non-IFRS adoption countries and applies a difference-in-difference (DiD) design to test for the incremental change for IFRS adoption countries over non-IFRS adoption countries. The study finds that SEO underperformance reduces for IFRS adopters relative to non-IFRS adopters in the post-adoption period. The reduction in SEO underperformance is influenced by increased disclosure, increased comparability, and number of accounting changes. The study also finds that the impact of adoption of IFRS on SEO underperformance exists only for firms in countries with strong enforcement, and is conditional on the implementation credibility of countries. The findings are robust to the application of a different measure of SEO underperformance.  Overall, the study suggests that IFRS has had a positive impact on capital markets. However, increased disclosure, comparability, and credible implementation play important roles in realising the benefits of adoption of IFRS. Thus, policymakers of weak enforcement countries are encouraged to strengthen their institutional environment in order to reap the benefits that adoption of IFRS can provide to their capital market.</p>

scholarly journals Capital market effects of adoption of IFRS

2021 ◽  
Author(s):  
◽  
Solomon Opare
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Cost Of Capital ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Market Liquidity ◽  
Ifrs Adoption ◽  
Voluntary Adoption ◽  
The Impact ◽  
Financial Reporting Comparability

<p>This thesis examines the impact of adoption of IFRS (International Financial Reporting Standards) on two aspects of the operation of capital markets. Firstly, the impact of adoption of IFRS on financial reporting comparability, market liquidity, and cost of capital. Secondly, the impact of adoption of IFRS on seasoned equity offering (SEO) underperformance.  To examine the impact of adoption of IFRS on financial reporting comparability, market liquidity, and cost of capital, the study used meta-analysis of empirical studies published since 2000. Meta-analysis provides an objective view of the empirical results, in contrast to narrative reviews, which offer subjective conclusions. From meta-analysis of 55 empirical studies with 1,259 effect sizes, the study finds that IFRS adoption has increased financial reporting comparability, market liquidity, and reduced cost of equity. For cost of debt, a decrease is observed only for voluntary adoption. The meta-regression analysis shows how the results differ across mandatory and voluntary adoption of IFRS and that the measurement choices, type of control variables, study design, and strength of empirical results explain the variation in the observed effect of adoption of IFRS.  To examine the impact of adoption of IFRS on SEO underperformance the study analyses a large sample of SEOs from 51 countries over the period 1992-2017. Given that the empirical literature on SEOs has established that information asymmetry contributes to SEO underperformance, it is important to assess whether adoption of IFRS has reduced the uncertainties surrounding SEOs and, thus, subsequent underperformance. The study employs a control sample of non-IFRS adoption countries and applies a difference-in-difference (DiD) design to test for the incremental change for IFRS adoption countries over non-IFRS adoption countries. The study finds that SEO underperformance reduces for IFRS adopters relative to non-IFRS adopters in the post-adoption period. The reduction in SEO underperformance is influenced by increased disclosure, increased comparability, and number of accounting changes. The study also finds that the impact of adoption of IFRS on SEO underperformance exists only for firms in countries with strong enforcement, and is conditional on the implementation credibility of countries. The findings are robust to the application of a different measure of SEO underperformance.  Overall, the study suggests that IFRS has had a positive impact on capital markets. However, increased disclosure, comparability, and credible implementation play important roles in realising the benefits of adoption of IFRS. Thus, policymakers of weak enforcement countries are encouraged to strengthen their institutional environment in order to reap the benefits that adoption of IFRS can provide to their capital market.</p>

scholarly journals Secondary Market Liquidity and Primary Market Pricing of Corporate Bonds

2019 ◽  
Vol 12 (2) ◽  
pp. 86 ◽  
Author(s):  
Michael A. Goldstein ◽  
Edith S. Hotchkiss ◽  
David J. Pedersen
Keyword(s):  
Asset Prices ◽  
Cost Of Capital ◽  
Secondary Market ◽  
Market Liquidity ◽  
Corporate Bond ◽  
Yield Spread ◽  
Market Pricing ◽  
Yield Spreads ◽  
Ex Ante ◽  
The Impact

This paper studies the link between secondary market liquidity for a corporate bond and the bond’s yield spread at issuance. Using ex-ante measures of expected liquidity at the time of issuance, based on the characteristics of the underwriting syndicate, we find an economically large impact of liquidity on yield spreads. We estimate that a 10% increase in expected liquidity implies a decrease in the yield spread at issuance of between 8% and 14%. Our results suggest that liquidity has an important effect on firms’ cost of capital, and they contribute to the literature which examines the impact of liquidity on asset prices.

The impact of weight loss on depression: A preliminary meta-analysis

2004 ◽  
Author(s):  
Bruce Blaine ◽  
Jennifer McElroy ◽  
Hilary Vidair
Keyword(s):  
Weight Loss ◽  
Meta Analysis ◽  
The Impact

The impact of adult weight management interventions on mental health: A systematic review and meta-analysis

2019 ◽  
Author(s):  
Rebecca Jones ◽  
Emma Lawlor ◽  
Simon Griffin ◽  
Sluijs Esther van ◽  
Amy Ahern
Keyword(s):  
Mental Health ◽  
Systematic Review ◽  
Weight Management ◽  
Meta Analysis ◽  
Adult Weight ◽  
Management Interventions ◽  
The Impact

On the Impact of Aptness, Conventionality and Familiarity on Metaphor Processing from a Meta-analytical Point of View

2020 ◽  
Vol 6 (1) ◽  
pp. 55-106
Author(s):  
Csilla Rákosi
Keyword(s):  
Meta Analysis ◽  
Point Of View ◽  
Psycholinguistic Research ◽  
Analytical Point ◽  
Metaphor Processing ◽  
The Impact

Psycholinguistic research into metaphor processing is burdened with empirical problems as experiments provide diverging evidence on the impact of conventionality, familiarity and aptness, and with conceptual issues as the interpretation and operationalization of the three concepts mentioned, as well as the related predictions which can be drawn from theories of metaphor processing, are controversial in the literature. This paper uses tools of statistical meta-analysis in order to bring us closer to the solution of these problems and reveal future lines of research.

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