IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information: Evidence from Japanese Listed Firms

26 Pages Posted: 8 Aug 2018

Multiple version iconThere are 2 versions of this paper

Date Written: June 30, 2018

Abstract

This paper investigates whether accounting information of firms that voluntarily adopted IFRS provides incremental information to the capital market, using a sample of Japanese listed firms that disclosed reconciling items from Japanese Generally Accepted Accounting Principles (J-GAAP) to International Financial Reports Standards (IFRS) when they transfer from J-GAAP to IFRS for the first time. In details, applying level models, I tested the incremental content of reconciliation from J-GAAP to IFRS for investors interested in J-GAAP- and IFRS-based accounting numbers, respectively. The results show that the reconciliation items do have incremental information for IFRS-based other than J-GAAP-based accounting information users.

Keywords: IFRS, voluntary adoption, value relevance, first-time adoption, Japan

JEL Classification: M41

Suggested Citation

Yan, Su, IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information: Evidence from Japanese Listed Firms (June 30, 2018). Available at SSRN: https://ssrn.com/abstract=3213041 or http://dx.doi.org/10.2139/ssrn.3213041

Su Yan (Contact Author)

Waseda University ( email )

1-6-1, Nishi-Waseda
Shinjuku-ku, Tokyo 169-8050
Japan
0081-80-4138-0812 (Phone)

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