|
|
|
|
||||
|
||||
Market Reaction to the Adoption of IFRS in EuropeChris ArmstrongUniversity of Pennsylvania - Accounting Department Mary E. BarthStanford University - Graduate School of Business Alan D. JagolinzerUniversity of Colorado - Leeds School of Business Edward J. RiedlBoston University - School of Management April 20, 2009 Accounting Review, Forthcoming Abstract: This study examines European stock market reactions to 16 events associated with the adoption of International Financial Reporting Standards (IFRS) in Europe. European IFRS adoption represented a major milestone towards financial reporting convergence yet spurred controversy reaching the highest levels of government. We find an incrementally positive reaction for firms with lower quality pre-adoption information, which is more pronounced in banks, and with higher pre-adoption information asymmetry, consistent with investors expecting net information quality benefits from IFRS adoption. We find an incrementally negative reaction for firms domiciled in code law countries, consistent with investors’ concerns over enforcement of IFRS in those countries. Finally, we find a positive reaction to IFRS adoption events for firms with high quality pre-adoption information, consistent with investors expecting net convergence benefits from IFRS adoption.
Number of Pages in PDF File: 52 Keywords: IFRS, IAS 39, Convergence, Europe JEL Classification: M41, M44, M47, G15, G38 Accepted Paper SeriesDate posted: May 19, 2006 ; Last revised: April 4, 2012Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo7 in 0.516 seconds
