Abstract

http://ssrn.com/abstract=2172014
 
 

References (26)



 
 

Footnotes (4)



 


 



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


Xi Li


Temple University - Department of Accounting

Holly Yang


Singapore Management University - School of Accountancy

August 2015

The Accounting Review, Forthcoming
Singapore Management University School of Accountancy Research Paper No. 2016-39

Abstract:     
This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-difference 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.

Number of Pages in PDF File: 70

Keywords: Voluntary disclosure, IFRS, Management forecasts, Legal regime, Capital-market demand

JEL Classification: G14, G15, K22, M41


Open PDF in Browser Download This Paper

Date posted: November 7, 2012 ; Last revised: February 12, 2016

Suggested Citation

Li, Xi and Yang, Holly, Mandatory Financial Reporting and Voluntary Disclosure: The Effect of Mandatory IFRS Adoption on Management Forecasts (August 2015). The Accounting Review, Forthcoming; Singapore Management University School of Accountancy Research Paper No. 2016-39. Available at SSRN: http://ssrn.com/abstract=2172014 or http://dx.doi.org/10.2139/ssrn.2172014

Contact Information

Xi Li (Contact Author)
Temple University - Department of Accounting ( email )
Philadelphia, PA 19122
United States

Holly Yang
Singapore Management University - School of Accountancy ( email )
60 Stamford Road
Singapore 178900
Singapore
HOME PAGE: http://sites.google.com/site/holly0417phd/

Feedback to SSRN


Paper statistics
Abstract Views: 4,077
Downloads: 1,153
Download Rank: 11,192
References:  26
Footnotes:  4

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.250 seconds