scholarly journals The impact of mandatory IFRS adoption on banks’ share prices: Evidence from the OECD countries

2021 ◽  
Vol 22 (11) ◽  
pp. 1310-1326
Author(s):  
Rustam R. ABDURAUPOV ◽  
Feruz N. SULTANOV ◽  
Abdulla G. IBRAGIMOV
Keyword(s):  
Financial Reporting ◽  
Oecd Countries ◽  
Ordinary Least Squares ◽  
Share Price ◽  
Reporting Standards ◽  
Information Risk ◽  
Share Prices ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
The Impact

Subject. The adoption of International Financial Reporting Standards (IFRS) was a significant milestone to unify financial reporting standards. However, there are many conflicting views regarding the impact of IFRS implementation on the investment attractiveness of banks. This put us on analyzing the sensitivity of changes in the equity securities market in terms of information risk and adoption of IFRS. Objectives. The article aims to explore the relationship between the harmonization of accounting and international standards and the banks’ share prices in eleven OECD countries by analyzing panel data within 1997–2015. Methods. For the study, we used a set of tests, such as the Ordinary Least Squares regression, Hausman specification test, Variance Inflation Factor, Unit Root test, Panel-Corrected Standard Error regression, and the Breusch-Pagan test. Results. The obtained results indicate a positive impact of the IFRS adoption on the change in prices for bank shares. In particular, changes in stock prices averaged 64 units. This is explained by the benefits of applying IFRS, which include positive investor expectations, improved financial reporting quality and comparability across countries, and reduced information risk. Conclusions. The hypothesis of bank share price increase after the IFRS adoption is true for the OECD countries.

Challenges of International Financial Reporting Standards (IFRS) Adoption in Libya

2014 ◽  
Vol 1 (1) ◽  
pp. 390 ◽  
Author(s):  
Mohamed Abulgasem Zakari
Keyword(s):  
Developing Country ◽  
Financial Reporting ◽  
Accounting Education ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Economic Issues ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
The Impact ◽  
Ifrs Implementation

This study investigates the challenges that face implementing of International Financial Reporting Standards (IFRS) by Libyan firms. In particular, this paper analyses the effect of legal, economic, accounting education and culture structures on adopting of IFRS in the Libyan context. A questionnaire was used to collect data regarding the effect of some selected challenges on IFRS adoption in Libya. The results of the study indicate that IFRS adoption by Libyan companies has faced some obstacles such as accounting education and economic issues. This research extends accounting literature by studying the challenges of IFRS in Libya (a developing country), focusing on the impact of legal, accounting education, economic and culture in IFRS implementation.

scholarly journals The impact of international financial reporting standards on cost of capital

2016 ◽  
Vol 14 (1) ◽  
pp. 458-465 ◽  
Author(s):  
Krismiaji ◽  
Adi Prabhata
Keyword(s):  
Financial Reporting ◽  
Cost Of Capital ◽  
Emerging Market ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
The Cost ◽  
The Impact ◽  
Ifrs Implementation

This paper discusses empirical research examining the impact of International Financial Reporting Standards (IFRS) on cost of capital. Using a sample of 1.173 observations of publicly listed companies on the Indonesian Stock Exchange for the fiscal year that ends on December 31, 2006 through 2013, this research finds evidence of positive relationship between IFRS implementation and cost of capital. This means that in post adoption period, the cost of capital increase. This result is inconsistent with investor’s expectation, in which IFRS implementation will reduce information asymmetry which in turn decreases cost of capital. When analysis is decomposed into per sector’s analysis, the results are inconsistent. For some sectors, IFRS adoption does not have impact on the cost of capital, whereas for the others IFRS adoption positively affect the cost of capital. This study provides further evidence on the economic consequence of IFRS implementation on cost of capital using data from emerging market with low-level coercion which is Indonesian Capital Market.

scholarly journals International Financial Reporting Standards Adoption and Value Relevance of Financial Information of Quoted Healthcare Firms in Nigeria

2018 ◽  
Vol 5 (4) ◽  
pp. 174
Author(s):  
Taibat A. Atoyebi ◽  
Yinka M. Salaudeen ◽  
Jerry Y. A. Onyilokwu
Keyword(s):  
Financial Reporting ◽  
Asset Management ◽  
Value Relevance ◽  
Financial Information ◽  
Share Price ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Earnings Per Share ◽  
The Impact

International Financial Reporting Standards (IFRS) was first adopted in 2005 by European Union countries while Nigeria mandatorily adopted in 2012 to participate in opportunities offered by globalization. This study, therefore, investigated the impact of IFRS adoption on the value relevance of financial information of quoted Healthcare Firms in Nigeria. The study conducted a pre (2008-2011) and post (2012-2015) IFRS analyses on six Healthcare firms quoted on the Nigeria Stock Exchange. The study sourced data on Earnings per Share (EPS), Change in Earnings per Share (CEPS), Book Value per Share (BVPS) and Share Price (SP) from published annual reports of the quoted Healthcare firms and Cashcraft Asset Management. Using the Multiple regression model the study revealed that Pre- IFRS financial information is value relevant; Post-IFRS financial information is also value relevant; and Post-IFRS financial information has relative value relevance over Pre- IFRS financial information.

scholarly journals The Impact of International Financial Reporting Standards on Financial Performance

2018 ◽  
Vol 1 (1) ◽  
pp. 20
Author(s):  
Adedoyin Isola Lawal ◽  
Yinka D. Olufemi ◽  
IfeOluwa Adewuyi ◽  
Olubukoye Opeyemi Oye
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Quality Reporting ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Earnings Per Share ◽  
Foreign Countries ◽  
The Impact

Globalization, capital market crash and the Enron’s case led the accounting profession to insist on the need for a single set of high quality reporting standards. International Financial Reporting Standards (IFRS) were first adopted in 2005 by EU countries while Nigeria agreed to adopt in 2012. The question is: How does IFRS adoption improve the monetary relevance of accounting information? Several studies have explored the monetary relevance of IFRS adoption; however, they are based on foreign countries while Nigerian researches do not contain empirical evidence as they are mostly theoretical. This study therefore seeks to investigate the effect of IFRS adoption on financial performance. The study used correlation research design and data on Earnings per Share (EPS), Change in Earnings per Share (CEPS), Book Value per Share (BVPS) and net profit margin

scholarly journals Determinants of Voluntary International Financial Reporting Standards Adoption in Poland

2020 ◽  
Vol 31 (2) ◽  
pp. 155-168
Author(s):  
Marcin Kędzior ◽  
Malgorzata Cyganska ◽  
Dimitrios Syrrakos
Keyword(s):  
Financial Reporting ◽  
Relevant Literature ◽  
Supervisory Board ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Board Characteristics ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
International Investors ◽  
The Impact

The paper examines the determinants of voluntary International Financial Reporting Standards (IFRS) adoption in Poland. In doing so, it empirically confirms the impact of diverse CEO and supervisory board characteristics on voluntary IFRS adoption. The paper focuses on  446 publicly traded production companies from Poland. The analysis is based on logistic regression analysis. The empirical investigation  confirms the impact on voluntary IFRS adoption of such factors as company size, international investors, international supervisory board, number of supervisory board members, CEO nationality. The paper  contributes to the assessment of  voluntary IFRS adoption determinants, by presenting for the first time CEO and supervisory board characteristics and their impact on voluntary International Financial Reporting Standards (IFRS) adoption, and the determinants of IFRS adoption from Central and Eastern Europe. The paper enhances  existing knowledge of voluntary IFRS adoption by incorporating  new CEO and supervisory board characteristics, thus closing a gap in the relevant literature. The results of the paper are significant from the supervisor’s perspective, the quality of financial statements and the effectiveness of corporate governance systems.

scholarly journals The impact of IFRS-based accounting standards on earnings management: evidence from Malaysia

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Yosra Makni Fourati ◽  
Rania Chakroun Ghorbel
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Emerging Market ◽  
Accounting Standards ◽  
Absolute Value ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Earning Quality ◽  
The Impact ◽  
Different Levels

This study aims to examine the consequences of International Financial Reporting Standards (IFRS) convergence in an emerging market. More specifically, we investigate whether the adoption of the new set of accounting standards in Malaysia is associated with lower earnings management. Using a sample of 3,340 firm-year observations across three reporting periods with different levels of IFRS adoption, we provide evidence that IFRS convergence improves earning quality. In particular, we find a significant decrease in the absolute value of discretionary acccruals in the partial IFRS-convergence period (2007-2011), whereas this effect is restrictive after the complete IFRS- implementation.

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