Convergence of accounting standards and financial reporting externality: evidence from mandatory IFRS adoption

Gao, Ru and Sidhu, Baljit K. (2016) Convergence of accounting standards and financial reporting externality: evidence from mandatory IFRS adoption. Accounting and Finance, . doi:10.1111/acfi.12236


Author Gao, Ru
Sidhu, Baljit K.
Title Convergence of accounting standards and financial reporting externality: evidence from mandatory IFRS adoption
Journal name Accounting and Finance   Check publisher's open access policy
ISSN 0810-5391
1467-629X
Publication date 2016-10-13
Year available 2016
Sub-type Article (original research)
DOI 10.1111/acfi.12236
Open Access Status Not yet assessed
Total pages 32
Place of publication Richmond, VIC, Australia
Publisher Wiley-Blackwell Publishing Asia
Collection year 2017
Language eng
Formatted abstract
Using mandatory adoption of International Financial Reporting Standards (IFRS) as a natural experiment, we examine whether reporting externalities can be magnified when financial disclosures are based on a common set of accounting standards. Specifically, we investigate and find that the changes in publicly available information of mandatory IFRS adopters (due to the convergence of accounting standards) can impact the investment efficiency of prior voluntary adopters. While we document positive externalities of mandatory IFRS, we also observe heterogeneity in these spillover effects at the firm and the country level, suggesting that externalities increase with improvements in the comparability of accounting information.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
UQ Business School Publications
 
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Created: Wed, 29 Mar 2017, 15:48:43 EST by Karen Morgan on behalf of UQ Business School