IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information: Evidence from Japanese Listed Firms
26 Pages Posted: 8 Aug 2018
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IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information: Evidence from Japanese Listed Firms
IFRS Voluntary Adoption Effect on the Value Relevance of Accounting Information: Evidence from Japanese Listed Firms
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: Suggested Citation