z-logo
Premium
Mandatory Adoption of IASB Standards: Value Relevance and Country‐Specific Factors
Author(s) -
Morais Ana Isabel,
Curto José Dias
Publication year - 2009
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2009.00051.x
Subject(s) - accounting , business , relevance (law) , accounting information system , international financial reporting standards , enforcement , value (mathematics) , accounting standard , financial accounting , political science , machine learning , computer science , law
The objective of this study is to investigate if the value relevance of European‐listed companies increased after the mandatory application of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) and how the value relevance of accounting information prepared under IAS/IFRS is shaped by the specific factors of the country in which companies are domiciled. Results show that the value relevance of financial information during the period companies applied mandatory IAS/IFRS is higher than for the period during which they applied local accounting standards. We also found that countries where accounting and tax are clearly separated show more relevant accounting information. Finally, we found that companies from countries with more legal and public enforcement mechanisms disclose less relevant accounting information under IAS/IFRS.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here