Download this Paper Open PDF in Browser

The Effects of IFRS Adoption: A Review of the Early Empirical Evidence

13 Pages Posted: 4 Jul 2008 Last revised: 4 Dec 2009

Minga Negash

Metropolitan State University of Denver; University of the Witwatersrand

Date Written: October 8, 2008

Abstract

This review documents the conceptual and methodological issues that relate to the domain of financial reporting research that attempts to examine whether there are measurable gains, (if any) stemming from the adoption of international financial reporting standards, (IFRS). It selects and reviews four recent papers from conceptual, research design and policy perspectives. Information content, uncertainty-disclosure, value relevance and earnings and accounting quality studies have all attempted to show the benefits of finer and increased information environments. Notwithstanding the early evidence, this review argues that the papers face both epistemological and research design problems, in that IFRS adoption effect studies do not take cognizance of the contributions of the literatures on financial integration, earnings sustainability and market microstructure.

Keywords: IFRS, IAS, Financial integration (globalization), short term market reaction studies, supply chain financial reporting systems, disclosure, value relevance

JEL Classification: M41, M48, G14, G15, F15

Suggested Citation

Negash, Minga, The Effects of IFRS Adoption: A Review of the Early Empirical Evidence (October 8, 2008). Available at SSRN: https://ssrn.com/abstract=1154504 or http://dx.doi.org/10.2139/ssrn.1154504

Minga Negash (Contact Author)

Metropolitan State University of Denver ( email )

Denver, CO 80217
United States

University of the Witwatersrand

1 Jan Smuts Avenue
Johannesburg, Gauteng 2000
South Africa

Paper statistics

Downloads
2,488
Rank
3,871
Abstract Views
8,495