Open AccessMarket Reaction To IFRS: Evidence from the Athens Stock Exchange
Author(s) -
Anastasia Maggina
Publication year - 2011
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v1i1.765
Subject(s) - accounting , business , stock exchange , shareholder , capital market , empirical evidence , incentive , monetary economics , accounting information system , international financial reporting standards , debt , corporate governance , financial system , economics , finance , philosophy , epistemology , microeconomics
The capital market effects of IAS/IFRS have been examined in the international literature and have indicated taht the effects are significant.In the contrary,evidence drawn from the Athens Stock Exchange indicates that there is no effect of IAS/IFRS on stock prices and returns.The point was whether mandatory adoption of AS/IFRS could guarrantee a value-relevant accounting information.Restricted to a country with poor institutional factors affecting teh preparers'financial reporting incentives,the empirical findings are justified.On the other hand,the transition from a tax-driven accounting system which was characterized by a stakeholder(debt-holder) orientation to a shareholder oriented(and independent from tax reporting considerations) accounting system seems to be ineffective up to date.