scholarly journals IFRS adoption, information asymmetry and the home bias

2016 ◽  
Vol 13 (2) ◽  
pp. 379-389 ◽  
Author(s):  
Baccouri Mouna ◽  
Fedhila Hassouna
Keyword(s):  
Information Asymmetry ◽  
Home Bias ◽  
Capital Controls ◽  
Equity Market ◽  
Economic Indicators ◽  
Portfolio Investment ◽  
Ifrs Adoption ◽  
Governance Indicators ◽  
Mediator Variable

This paper investigates whether IFRS adoption reduces the home bias equity using the information asymmetry as a mediator variable to this relationship. Focusing in countries included in the Coordinated Portfolio Investment Survey “CPIS” our sample is composed by 512 observations (country-year) that cover the period 2003 to 2012. Our finding indicates that the full IFRS adoption reduces the information asymmetry and then the home bias. These results validate our expectations. Nevertheless, the partial IFRS adoption doesn’t clearly support our expectations. We found that the partial IFRS adoption increases significantly the information asymmetry but reduces the home bias. This paper examined the effect of others factors that prior researches indicate that they affect the home bias as the governance indicators, the economic indicators, equity market characteristics and the capital controls.

scholarly journals The effect of the level of indebtedness on the earnings information content stemming from the mandatory IFRS adoption

2016 ◽  
Vol 4 (1) ◽  
pp. 12
Author(s):  
Hela Turki ◽  
Senda Wali ◽  
Younes Boujelbene
Keyword(s):  
Information Asymmetry ◽  
Information Content ◽  
Financial Reporting ◽  
Forecast Error ◽  
Financial Analysts ◽  
Forecast Dispersion ◽  
Earnings Information ◽  
Ifrs Adoption ◽  
High Level ◽  
The Impact

<p>This paper examines the impact of IFRS / IAS (International Financial Reporting Standards / International Accounting Standards) mandatory adoption on the earning's information content apprehended by the level of information asymmetry and whether this impact differs from one company to another with regard to its level of indebtedness. The information asymmetry is measured by the properties of financial analysts’ forecasts (error and dispersion).This study is conducted over 11 years from 2002 to 2012 by taking as a sample all the companies that belong to the CAC all tradable indexes. The results show a significant effect of these international's standards on financial analysts' forecasts, which stress informational content improvement. In addition, high level of indebtedness associated with IFRS adoption reduces forecast dispersion. By contrast, low level of indebtedness associated with IFRS adoption reduces forecast error.</p>

scholarly journals INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION, INVESTOR PROTECTION, AND FOREIGN PORTFOLIO INVESTMENT: A REVIEW

2021 ◽  
pp. 17-38
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Investor Protection ◽  
International Financial Reporting Standards ◽  
Regulatory Environment ◽  
Portfolio Investment ◽  
Reporting Standards ◽  
Foreign Portfolio Investment ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

This paper aims to analyze the impacts of International Financial Reporting Standards (IFRS) adoption on foreign portfolio investment (FPI) in relation to investor protection based on existing empirical literature. This study uses a historical approach and focuses on thirty-six relevant articles published in accounting and finance journals. The author provides a theoretical groundwork of the association between IFRS adoption and FPI and summarizes the results. The findings are critically analyzed by employing developed vs. developing country lens. The review study reveals that the effects of IFRS adoption on FPI significantly differ between developed and developing countries. Although the positive impact of IFRS adoption on FPI is documented in existing literature, not all countries (particularly developing countries), firms, and users have benefited or equally benefited from IFRS adoption regarding FPI. In addition, the positive impacts of IFRS adoption on FPI are associated with the country's regulatory environment, such as level of investor protection. The findings of the study suggest that developing countries should ensure a proper regulatory environment to reap the full benefits of IFRS adoption. This review contributes to the existing literature by providing a comparative analysis of IFRS adoption effect on FPI between developed and developing countries while also suggests future research avenues.

Globalization and the Reach of Multinationals Implications for Portfolio Exposures, Capital Flows, and Home Bias

FEDS Notes ◽  
2020 ◽  
Vol 2020 (2813) ◽  
Author(s):  
Carol Bertaut ◽  
◽  
Beau Bressler ◽  
Stephanie Curcuru ◽  
◽  
...  
Keyword(s):  
Capital Flows ◽  
Home Bias ◽  
Balance Of Payments ◽  
Portfolio Investment ◽  
Number Of Firms ◽  
The Imf

The residence-based framework of measuring international exposure is increasingly less informative, as a growing number of firms locate in low-tax jurisdictions and issue securities through offshore subsidiaries. This has clouded the view of capital flows and investor exposures from standard sources such as the IMF Balance of Payments and the Coordinated Portfolio Investment Survey.

Mandatory IFRS Adoption and the U.S. Home Bias

2011 ◽  
Author(s):  
Inder K. Khurana ◽  
Paul N. Michas
Keyword(s):  
Home Bias ◽  
Ifrs Adoption ◽  
The U.S

scholarly journals Home Bias and the Real Estate Prices

2017 ◽  
Vol 8 (2) ◽  
pp. 145
Author(s):  
Hsiu-yun Chang
Keyword(s):  
Real Estate ◽  
Information Asymmetry ◽  
Time Preference ◽  
Home Bias ◽  
Real Estate Market ◽  
High Time ◽  
The Real ◽  
The Real Estate ◽  
Marginal Effects ◽  
Property Prices

This paper argues that the Home Bias phenomenon prevails in the real estate market, which is inferred from psychology, economic, and financial literature. Utilizing the trait of the Home bias behavior, which can reduce the risk of information asymmetry, I modify the classical pure trading model and employ the parameter of relative risk aversion as the proxy variable of Home Bias to translate the relationship among Home Bias phenomenon, the property prices, and the expected returns. The comparative static analyses indicate that Home Bias behavior is negatively related to the property prices and positively related to the property returns. The marginal effects on property prices are heightened in situations of high time preference and relative low Home Bias. Conversely, the marginal effects on property returns are larger if the time preference parameter is smaller. As a household buyer with high time preference is located far away from a property, his bargaining power is easily affected by home bias behavior. Further, this paper focuses on the home bias elasticity of property prices and returns for the sake of unit-free property. Inelastic coefficients of elasticity of prices and returns indicate that the capability of households to lower property overvalued prices (i.e. increase investment returns) from reducing information asymmetry by using Home Bias behavior is still limited.

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