Mandatory IFRS Adoption, Corporate Governance and Firm Value

32 Pages Posted: 22 Jul 2020

See all articles by Joelson Oliveira Sampaio

Joelson Oliveira Sampaio

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics

Humberto Gallucci Netto

Fundacao Getulio Vargas School of Business at Sao Paulo

Vinicius Brunassi Silva

Fundação Escola de Comércio Álvares Penteado (FECAP)

Rafael F. Schiozer

Fundação Getulio Vargas/EAESP

Date Written: June 30, 2020

Abstract

We study whether financial and accounting disclosure affect firm value, by focusing on the adoption of the full International Financial Reporting Standards (IFRS) in Brazil in 2010. We claim that Brazil is a unique and ideal scenario to investigate this issue, because the country adopted IFRS in a shorter period compared to other economies, and its firms presented ex-ante cross-sectional heterogeneity in accounting quality. With a sample of Brazilian publicly-listed firms from 2004 to 2015 we use a diff-in-diff and propensity score matching techniques to compare firms with ex-ante lower quality of accounting (firms in the Regular and Level 1 tiers of corporate governance) with otherwise-similar firms that already complied with higher-quality accounting standards (firms in the Level 2 and Novo Mercado tiers) before the mandatory adoption of IFRS.

Keywords: IFRS, Corporate Governance, Firm Value, Accounting Quality

JEL Classification: G10,G30

Suggested Citation

Sampaio, Joelson Oliveira and Gallucci Netto, Humberto and Brunassi Silva, Vinicius Augusto and Schiozer, Rafael F., Mandatory IFRS Adoption, Corporate Governance and Firm Value (June 30, 2020). Available at SSRN: https://ssrn.com/abstract=3639275 or http://dx.doi.org/10.2139/ssrn.3639275

Joelson Oliveira Sampaio (Contact Author)

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics ( email )

Brazil

HOME PAGE: http://eesp.fgv.br/

Humberto Gallucci Netto

Fundacao Getulio Vargas School of Business at Sao Paulo ( email )

R Itapeva, 474 11º. andar
São Paulo, São Paulo 01332-000
Brazil

Vinicius Augusto Brunassi Silva

Fundação Escola de Comércio Álvares Penteado (FECAP) ( email )

Av. Liberdade, 532
Liberdade
São Paulo, SP 01502-001
Brazil
+551199518-5913 (Phone)

Rafael F. Schiozer

Fundação Getulio Vargas/EAESP ( email )

Sao Paulo
Brazil
55 11 32817700 (Phone)
55 11 32841789 (Fax)

HOME PAGE: http://www.fgvsp.br

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