Journal ArticleDOI
The Impact of Mandatory IFRS Adoption on Foreign Mutual Fund Ownership: The Role of Comparability
TLDR
In this article, the authors examined the change in foreign mutual fund investment in firms that began using International Financial Reporting Standards (IFRS) after its mandatory adoption in the European Union (EU) in 2005.Abstract:Â
Proponents of International Financial Reporting Standards (IFRS) argue that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. Our study tests this assertion by examining the change in foreign mutual fund investment in firms that began using IFRS after its mandatory adoption in the European Union (EU) in 2005. We hypothesize that firms experience larger increases in foreign mutual fund ownership when there is a credible increase in uniformity from IFRS adoption. We define a credible increase in uniformity as a large increase in the number of industry peers using the same accounting standards in countries where IFRS is credibly implemented. Consistent with our hypothesis, we find that subsequent to mandatory IFRS adoption, the increase in foreign mutual fund investment is greater among the firms that experience relatively large increases in uniformity and are in countries with strong implementation credibility.read more
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Journal ArticleDOI
Earnings Management and Investor Protection: An International Comparison
Journal ArticleDOI
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research
Christian Leuz,Peter D. Wysocki +1 more
TL;DR: The authors discusses the empirical literature on the economic consequences of disclosure and financial reporting regulation, drawing on U.S. and international evidence, highlighting the challenges with quantifying regulatory costs and benefits, measuring disclosure and reporting outcomes, and drawing causal inferences from regulatory studies.
Journal ArticleDOI
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research
Christian Leuz,Peter D. Wysocki +1 more
TL;DR: The authors discusses the empirical literature on the economic consequences of disclosure and financial reporting regulation (including IFRS adoption), drawing on U.S. and international evidence, highlighting the challenges with quantifying regulatory costs and benefits, measuring disclosure and reporting outcomes, and drawing causal inferences from regulatory studies.
Journal ArticleDOI
Incentives or Standards: What Determines Accounting Quality Changes around IFRS Adoption?
TL;DR: This paper examined the impact of managerial financial reporting incentives on accounting quality changes around International Financial Reporting Standards (IFRS) adoption and found that firms that resist IFRS adoption have closer connections with banks and inside shareholders, consistent with lower incentives for more compr...
Article Type: Original Article DOES MANDATORY IFRS ADOPTION IMPROVE THE INFORMATION ENVIRONMENT?
TL;DR: In this article, the authors examine the effect of mandatory IFRS adoption on firms' information environment and find that the improvement in the information environment is driven both by information and comparability effects.
References
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Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Earnings management and investor protection: an international comparison
TL;DR: In this paper, the authors examine systematic differences in earnings management across 31 countries and propose an explanation for these differences based on the notion that insiders, in an attempt to protect their private control benefits, use earnings management to conceal firm performance from outsiders.
BookDOI
Governance matters VII : aggregate and individual governance indicators 1996-2007
TL;DR: The 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption as discussed by the authors.
Journal ArticleDOI
The effect of international institutional factors on properties of accounting earnings
TL;DR: In this paper, the authors characterize the ''shareholder'' and ''stakeholder'' corporate governance models of common and code law countries respectively as resolving information asymmetry by public disclosure and private communication.