Does Mandatory IFRS Adoption Improve Information Comparability?

Accounting Review - Tập 87 Số 5 - Trang 1767-1789 - 2012
Rita Wing Yue Yip1, Danqing Young2
1Lingnan University.
2The Chinese University of Hong Kong

Tóm tắt

ABSTRACT This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union significantly improves information comparability in 17 European countries. We employ three proxies—the similarity of accounting functions that translate economic events into accounting data, the degree of information transfer, and the similarity of the information content of earnings and of the book value of equity—to measure information comparability. Our results suggest that mandatory IFRS adoption improves cross-country information comparability by making similar things look more alike without making different things look less different. Our results also suggest that both accounting convergence and higher quality information under IFRS are the likely drivers of the comparability improvement. In addition, we find some evidence that cross-country comparability improvement is affected by firms' institutional environment. Data Availability: Data are available from commercial providers (Worldscope, DataStream, and I/B/E/S).

Từ khóa


Tài liệu tham khảo

Armstrong, 2010, Market reaction to the adoption of IFRS in Europe, The Accounting Review, 85, 31, 10.2308/accr.2010.85.1.31

Ashbaugh, 2001, Domestic accounting standards, international accounting standards, and the predictability of earnings, Journal of Accounting Research, 39, 417, 10.1111/1475-679X.00020

Atiase, 1985, Predisclosure information, firm capitalization, and security price behavior around earnings announcements, Journal of Accounting Research, 23, 21, 10.2307/2490905

Baginski, 1987, Intraindustry information transfers associated with management forecasts of earnings, Journal of Accounting Research, 25, 196, 10.2307/2491015

Ball, 2003, Incentives versus standards: Properties of accounting income in four East Asian countries, Journal of Accounting and Economics, 36, 235, 10.1016/j.jacceco.2003.10.003

Ball, 2005, Earnings quality in U.K. private firms: Comparative loss recognition timeliness, Journal of Accounting and Economics, 39, 83, 10.1016/j.jacceco.2004.04.001

Barth, 2011, Are IFRS-Based and U.S. GAAP-Based Accounting Amounts Comparable?, Working Paper No. 78. Stanford, CA: Stanford University

Beuselinck, C., P. Joos, and S. Van der Meulen. 2007 . International Earnings Comparability . Working paper , Tilburg University .

Bradshaw, M. T., G. S. Miller, and G. Serafeim, et al . 2009 . Accounting Method Heterogeneity and Analysts' Forecasts . Working paper , The University of Chicago , University of Michigan, and Harvard University .

Burgstahler, 2006, The importance of reporting incentives: Earnings management in European private and public firms, The Accounting Review, 81, 983, 10.2308/accr.2006.81.5.983

Capkun, V., A. Cazavan-Jeny, T. Jeanjean, and L. A. Weiss. 2008 . Earnings Management and Value Relevance during the Mandatory Transition from Local GAAPS to IFRS in Europe . Working paper , HEC School of Management, ESSEC Business School, HEC Paris, Georgetown University .

Chi, S. 2009 . Simultaneous Presence of Different Domestic GAAPS and Investors' Limited Attention Bias in U.S. Equity Market: Implication of Convergence . Working paper , University of California, Irvine .

Choi, F. D. S., C. A. Frost, and G. K. Meek. 1999 . International Accounting . Upper Saddle River, NJ : Prentice Hall .

Clarkson, 2011, The impact of IFRS adoption on the value relevance of book value and earnings, Journal of Contemporary Accounting and Economics, 7, 1, 10.1016/j.jcae.2011.03.001

Clinch, 1987, Intra-industry information releases: A recursive systems approach, Journal of Accounting and Economics, 9, 89, 10.1016/0165-4101(87)90018-8

Daske, 2008, Mandatory IFRS reporting around the world: Early evidence on the economic consequences, Journal of Accounting Research, 46, 1085, 10.1111/j.1475-679X.2008.00306.x

DeFond, 2011, The impact of IFRS adoption on foreign mutual fund ownership: The role of comparability, Journal of Accounting and Economics, 51, 240, 10.1016/j.jacceco.2011.02.001

De Franco, 2011, The benefits of financial statement comparability, Journal of Accounting Research, 49, 895, 10.1111/j.1475-679X.2011.00415.x

Financial Accounting Standards Board (FASB) . 1980 . Qualitative Characteristics of Accounting Information . Concepts Statement No. 2. Norwalk, CT : FASB .

Firth, 1976, The impact of earnings announcements on the share price behavior of similar type firms, Economic Journal, 86, 296, 10.2307/2230748

Firth, 1996, The transmission of corporate financial information across national borders and equity market linkages, Review of Accounting Studies, 1, 309, 10.1007/BF00570835

Foster, 1981, Intra-industry information transfers associated with earnings releases, Journal of Accounting and Economics, 3, 201, 10.1016/0165-4101(81)90003-3

Gow, 2010, Correcting for cross-sectional and time-series dependence in accounting research, The Accounting Review, 85, 483, 10.2308/accr.2010.85.2.483

Han, 1990, Unexpected earnings and intraindustry information transfers: Further evidence, Journal of Accounting Research, 28, 211, 10.2307/2491225

Han, 1989, Managers' earnings forecasts and intra-industry information transfers, Journal of Accounting and Economics, 11, 3, 10.1016/0165-4101(89)90012-8

Hayn, 1995, The information content of losses, Journal of Accounting and Economics, 20, 125, 10.1016/0165-4101(95)00397-2

Hoogendoorn, 2006, International accounting regulation and IFRS implementation in Europe and beyond—Experiences with first-time adoption in Europe, European Accounting Review, 15, 23, 10.1080/09638180600920087

Horton, 2010, Market reaction to and valuation of IFRS reconciliation adjustments: First evidence from the U.K, Review of Accounting Studies, 15, 725, 10.1007/s11142-009-9108-5

Hramnath, 2002, Investor and analyst reactions to earnings announcements of related firms: An empirical analysis, Journal of Accounting Research, 40, 1351, 10.1111/1475-679X.t01-1-00057

International Accounting Standards Board (IASB) . 2010 . Framework for the Preparation and Presentation of Financial Statements . London, U.K.: IASB .

Kim, 2008, Positive and negative information transfers from management forecasts, Journal of Accounting Research, 46, 885, 10.1111/j.1475-679X.2008.00297.x

Li, 2010, Does mandatory adoption of international financial reporting standards in the European Union reduce the cost of equity capital?, The Accounting Review, 85, 607, 10.2308/accr.2010.85.2.607

Milton, 1986, A sample size formula for multiple regression studies, The Public Opinion Quarterly, 50, 112, 10.1086/268963

Ohlson, 1995, Earnings, book values, and dividends in equity valuation, Contemporary Accounting Research, 11, 661, 10.1111/j.1911-3846.1995.tb00461.x

Szewczyk, 1992, The intra-industry transfer of information inferred from announcements of corporate security offerings, Journal of Finance, 47, 1935

Tawatnuntachai, 2002, Intra-industry reactions to stock split announcements, Journal of Financial Research, 25, 39, 10.1111/1475-6803.00003

Turner, 1983, International harmonization: A professional goal, Journal of Accountancy, 155, 58

Weber, 1992, Harmonization of international accounting standards, National Public Accountant

Wu, J. S., and I. Zhang. 2010 . Accounting Integration and Comparability: Evidence from Relative Performance Evaluation around IFRS Adoption . Working paper , University of Rochester, University of Minnesota–Twin Cities.

Thông tin
Thông tin xuất bản

Accounting Review

Tập 87 Số 5

1767-1789

Thông tin tác giả