Effects of IFRS, Analysts, and ADR on Voluntary Disclosure of Brazilian Public Companies

2016 ◽  
Vol 16 (1) ◽  
pp. 21-35 ◽  
Author(s):  
José Elias Feres de Almeida ◽  
Herbert Simões Rodrigues
Keyword(s):  
Voluntary Disclosure ◽  
Positive Association ◽  
Adoption Process ◽  
Public Companies ◽  
Analyst Coverage ◽  
Listed Firms ◽  
Positive Shift ◽  
Ifrs Adoption ◽  
Disclosure Incentives ◽  
The U.S

ABSTRACT This study examines the effects of the interactions among IFRS adoption, analyst coverage, and cross-listings in the U.S. on the voluntary disclosure of Brazilian public companies. We document a significant positive shift on voluntary disclosure incentives among cross-listed firms from the IFRS pre-adoption period to the post-adoption period. We also find that analyst coverage has a positive association with voluntary disclosure over the IFRS adoption process; however, the interaction between IFRS adoption and analysts affects positively only environmental and social disclosure. Our results have some implications to regulators, investors, and practitioners.

scholarly journals Ownership structure and voluntary disclosure in corporate annual reports of Malaysian listed firms

2011 ◽  
Vol 8 (2) ◽  
pp. 296-312 ◽  
Author(s):  
Poh-Ling Ho ◽  
Gregory Tower
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Positive Association ◽  
Institutional Ownership ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Policy Makers ◽  
Listed Firms ◽  
Ownership Structures ◽  
The Impact

This paper examines the impact of ownership structure on the voluntary disclosure in the annual reports of Malaysian listed firms. The result shows that there is an increase in the extent of voluntary disclosure in Malaysian listed firms over the eleven-year period from 1996 to 2006. Ownership concentration consistently shows positive association with voluntary disclosure. Firms with higher foreign and institutional ownership have a significantly positive association with voluntary disclosure levels while firms with family ownership exhibit lower voluntary disclosure. Consistent with agency theory, different ownership structures have varied monitoring effects on agency costs and clearly influence firm’s disclosure practices. The findings provide insights to policy makers and regulators in their desire to increase transparency and accountability amidst the continual enhancement of corporate governance. The findings provide evidence that optimized ownership structure in any jurisdiction should be considered in any regulatory process that seeks to improve transparency.

How Would the Mandatory Adoption of IFRS Affect the Earnings Quality of U.S. Firms? Evidence from Cross-Listed Firms in the U.S.

2011 ◽  
Vol 25 (4) ◽  
pp. 837-860 ◽  
Author(s):  
Jerry Sun ◽  
Steven F. Cahan ◽  
David Emanuel
Keyword(s):  
Earnings Quality ◽  
Discretionary Accruals ◽  
Earnings Persistence ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
The Cross ◽  
The Impact ◽  
Timely Loss Recognition ◽  
The U.S

SYNOPSIS We examine the impact of IFRS adoption on the earnings quality of foreign firms cross-listed in the U.S. from countries that have already adopted IFRS on a mandatory basis. We use the cross-listed firms as surrogates for the U.S. firms so we can observe the effect of IFRS adoption in the U.S. We examine five measures of earnings quality related to discretionary accruals, target beating, earnings persistence, timely loss recognition, and the earnings response coefficient (ERC). To isolate the effect of IFRS adoption, we use a matched sample design where each cross-listed firm is matched to a U.S. firm. We find the difference in earnings quality from the pre- to post-IFRS period is not different for the cross-listed and matched firms when earnings quality is measured by absolute discretionary accruals, timely loss recognition, or a long-window ERC. However, for the incidence of small positive earnings and earnings persistence, we find significant difference-in-differences, indicating that IFRS adoption led to an improvement in earnings quality for cross-listed firms relative to the matched firms. Our results are slightly surprising since U.S. GAAP is generally viewed as high-quality standards with little room for improvement.

The Advent of IFRS in Canada: Incidence on Value Relevance

2016 ◽  
Vol 15 (3) ◽  
pp. 113-130 ◽  
Author(s):  
Denis Cormier ◽  
Michel L. Magnan
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Stock Markets ◽  
Value Relevance ◽  
Financial Statements ◽  
Market Prices ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
The U.S

ABSTRACT The paper focuses on Canada's enactment of IFRS for publicly accountable firms. We investigate whether IFRS meet one of their stated goals, which is to improve financial statements' relevance for stock markets. Results show that migrating from Canadian GAAP to IFRS enhances the value relevance of earnings but the effect is concentrated among firms that are cross-listed in the U.S. (and that do not report according to U.S. GAAP). The advent of IFRS enhances the value relevance of information contained in footnotes but attenuates the need for non-GAAP measures' disclosure. Stock market prices also embed more precise anticipations about future IFRS earnings. Additional analyses suggest that less earnings management accompanies IFRS adoption. Our results suggest that, for cross-listed firms, the adoption of IFRS enhanced the comparability of their financial statements and, ultimately, their value relevance.

scholarly journals Mandatory Financial Reporting and Voluntary Disclosure: The Effect of Mandatory IFRS Adoption on Management Forecasts

2015 ◽  
Vol 91 (3) ◽  
pp. 933-953 ◽  
Author(s):  
Xi Li ◽  
Holly I. Yang
Keyword(s):  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Earnings Forecasts ◽  
Management Forecasts ◽  
Market Demand ◽  
Management Earnings Forecasts ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
Disclosure Incentives

ABSTRACT This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-differences analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, increased shareholder demand, and increased analyst demand. We find evidence consistent with all three channels.

scholarly journals Diversification Strategy and Stock Price Crash Risk：Evidence from China

2020 ◽  
Vol 15 (3) ◽  
pp. 94
Author(s):  
Jun Qi ◽  
Wenying Diao
Keyword(s):  
Stock Price ◽  
Audit Quality ◽  
Positive Association ◽  
Crash Risk ◽  
Corporate Diversification ◽  
Diversification Strategy ◽  
Significant Positive Association ◽  
Analyst Coverage ◽  
Listed Firms ◽  
The Impact

This study examines the impact of the corporate diversification strategy on the stock price crash risk. Using a large sample of Chinese A-share listed companies for the period 2003-2017, we find the stock price crash risk significantly increases when the operation strategy of a firm changes from a specialized operation to a diversified operation or the degree of diversified operations deepens. We also find that our results are stronger for non-state-owned listed firms, but not significant for state-owned firms. Furthermore, we find that the significant positive association between diversification and crash risk is more pronounced for firms with low external audit quality and low analyst coverage. Our study suggests that the diversification of operating strategy matter in determine stock price crash risk.

scholarly journals Mandatory IFRS Adoption and Analyst Coverage: Evidence from the UK

2018 ◽  
Vol 12 (11) ◽  
pp. 435
Author(s):  
Mohammad Issa Almaharmeh ◽  
Hamzah Al-Mawali ◽  
Ghassan Obeidat
Keyword(s):  
Financial Reporting ◽  
Financial Analysts ◽  
Reporting Standards ◽  
Financial Analyst ◽  
Analyst Coverage ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Uk

This study investigates whether the mandatory adoption of International Financial Reporting Standards (IFRS) enforce financial analysts to cover the firms with their EPS forecast. After examining a large sample of 10,953 firm year observations from 1,467 distinct UK listed firms for the period between 1990 and 2013, the results suggest that, mandatory IFRS adoption attract more analysts to follow the firms. Where we find the number of financial analyst who cover the IFRS adopters is significantly higher than that for non-adopter firms.

scholarly journals Mandatory IFRS Adoption and Analyst Coverage: Evidence from the UK

2018 ◽  
Vol 12 (11) ◽  
pp. 416
Author(s):  
Mohammad Issa Almaharmeh ◽  
Hamzah Al-Mawali ◽  
Ghassan Obeidat
Keyword(s):  
Financial Reporting ◽  
Financial Analysts ◽  
Reporting Standards ◽  
Financial Analyst ◽  
Analyst Coverage ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Uk

This study investigates whether the mandatory adoption of International Financial Reporting Standards (IFRS) enforce financial analysts to cover the firms with their EPS forecast. After examining a large sample of 10,953 firm year observations from 1,467 distinct UK listed firms for the period between 1990 and 2013, the results suggest that, mandatory IFRS adoption attract more analysts to follow the firms. Where we find the number of financial analyst who cover the IFRS adopters is significantly higher than that for non-adopter firms.

Does Mandatory IFRS Adoption Affect the Credit Ratings of Foreign Firms Cross-Listed in the U.S.?

2013 ◽  
Vol 27 (3) ◽  
pp. 491-510 ◽  
Author(s):  
Ann Ling-Ching Chan ◽  
Audrey Wen-hsin Hsu ◽  
Edward Lee
Keyword(s):  
Financial Reporting ◽  
Information Quality ◽  
Credit Ratings ◽  
Foreign Firms ◽  
Information Costs ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Legal Enforcement ◽  
The U.S

SYNOPSIS: We examine whether the mandatory adoption of International Financial Reporting Standards (IFRS) affects the credit ratings of foreign firms cross-listed in the U.S. Consistent with the influence of accounting information quality on credit ratings that is established in the literature, we find significantly higher credit ratings among these cross-listed firms after IFRS. Furthermore, this effect is more pronounced among those from countries where there is a greater difference between previous domestic standards and IFRS, and from countries that had weaker legal enforcement and investor protection before the transition. Our findings are consistent with IFRS improving the transparency and creditworthiness of foreign firms cross-listed in the U.S. by reducing their information costs and risk for U.S. investors. The evidence implies that IFRS adoption in their home country could benefit firms that are already cross-listed or are seeking to cross-list in the U.S. JEL Classifications: F30; G15; M41.

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