Does Mandatory IFRS Adoption Improve Information Comparability?

Rita Wing Yue Yip · Danqing Xu Young

466 citations0/0 files storedThe Accounting Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Accounting Theory and Financial Reporting Financial Reporting and XBRL

Abstract

ABSTRACT This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union significantly improves information comparability in 17 European countries. We employ three proxies—the similarity of accounting functions that translate economic events into accounting data, the degree of information transfer, and the similarity of the information content of earnings and of the book value of equity—to measure information comparability. Our results suggest that mandatory IFRS adoption improves cross-country information comparability by making similar things look more alike without making different things look less different. Our results also suggest that both accounting convergence and higher quality information under IFRS are the likely drivers of the comparability improvement. In addition, we find some evidence that cross-country comparability improvement is affected by firms' institutional environment. Data Availability: Data are available from commercial providers (Worldscope, DataStream, and I/B/E/S).

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 466 citations exist upstream.

References

1995Earnings, Book Values, and Dividends in Equity Valuation*2004Earnings quality in UK private firms: comparative loss recognition timeliness 1995The information content of losses 2008Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences 2003Incentives versus standards: properties of accounting income in four East Asian countries 2006The Importance of Reporting Incentives: Earnings Management in European Private and Public Firms 2010Correcting for Cross-Sectional and Time-Series Dependence in Accounting Research 2008Financial Accounting Standards Board (FASB)

Cited by

2015Textual analysis and international financial reporting: Large sample evidence 2016Financial statement comparability and expected crash risk 2012Mandatory IFRS Adoption and Financial Statement Comparability 2014What drives the comparability effect of mandatory IFRS adoption?2014Accounting Standards Harmonization and Financial Statement Comparability: Evidence from Transnational Information Transfer

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.