Meta‐analysis of the Impact of Adoption of IFRS on Financial Reporting Comparability, Market Liquidity, and Cost of Capital.

A large number of empirical studies have addressed the effects of adoption of International Financial Reporting Standards (IFRS), but the results have been mixed. We use a meta‐analysis of 56 empirical studies with 1,265 effect sizes to determine the impact of adoption of IFRS on financial reporting...

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Publicado en:Abacus Vol. 57; no. 3; pp. 502 - 557
Autores principales: Opare, Solomon, Houqe, Muhammad Nurul, van Zijl, Tony
Formato: Literature Review
Publicado: Wiley-Blackwell Sep2021
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Meta‐analysis of the Impact of Adoption of IFRS on Financial Reporting Comparability, Market Liquidity, and Cost of Capital.
      aug:
        au:
          Opare, Solomon
          Houqe, Muhammad Nurul
          van Zijl, Tony
        affil:
          School of Accountancy, Massey Business School, Massey University,, New Zealand
          School of Accounting and Commercial Law, Victoria University of Wellington,, New Zealand
      su:
        Capital costs
        International Financial Reporting Standards
        Liquidity (Economics)
      sug:
        subj:
          Capital costs
          International Financial Reporting Standards
          Liquidity (Economics)
      keyword:
        Cost of debt
        Cost of equity
        Financial reporting comparability
        IFRS adoption
        Market liquidi0ty
        Meta‐analysis
      ab: A large number of empirical studies have addressed the effects of adoption of International Financial Reporting Standards (IFRS), but the results have been mixed. We use a meta‐analysis of 56 empirical studies with 1,265 effect sizes to determine the impact of adoption of IFRS on financial reporting comparability, market liquidity, cost of equity, and cost of debt. This approach provides an objective view of the empirical results, in contrast to narrative reviews which offer subjective conclusions. We find that IFRS adoption has increased financial reporting comparability and market liquidity, and reduced the cost of equity. For cost of debt, a decrease is observed only for voluntary adoption. Our meta‐regression analysis explains the variation in the observed effect of adoption of IFRS across mandatory and voluntary adoption of IFRS, and choice of measures, control variables, estimation methods, and the strength of the empirical results. We emphasize the importance of these study characteristics and call for further studies focusing on the cost of debt and also studies using recent data to reflect the changes in IFRS. This study should be of interest to regulators and policymakers as they are expected to assess the impacts of adoption of IFRS.
      pubtype: Academic Journal
      doctype: Literature Review
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    language: English
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      custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use.
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          year: 2021
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