Impact of IFRS on non-cross-listed Spanish companies: : Financial analysts and volume of trade

• Sonia Sanabria-García ^[1] ; Pascual Garrido-Miralles ^[1]
  1. [1] Universitat d'Alacant

     Universitat d'Alacant

     Alicante, España

     
• Localización: European Research on Management and Business Economics, ISSN 2444-8834, Vol. 26, Nº. 2, 2020, págs. 78-86
• Idioma: inglés
• DOI: 10.1016/j.iedeen.2020.04.001
• Enlaces
  • Texto completo (pdf)
• Dialnet Métricas: 1 Cita
• Resumen

  • This study aims to analyse, within the scope of publicly listed Spanish companies, whether the mandatory implementation of International Financial Reporting Standards (IFRS) has had an effect on financial analysts’ earnings forecasts and investments in non-cross-listed Spanish companies (those only listed on the Spanish capital market). A sample of 369 observations for companies listed on the Spanish securities market for the period 2004–2007, of which 84 are cross-listed, was used to perform the analysis. The results show that the transition from domestic to international accounting standards has had positive effects for non-cross-listed Spanish companies, leading to the improved accuracy of financial analysts’ earnings forecasts and an increase in investments.

• Referencias bibliográficas
  • Abad, D., Cutillas-Gomariz, M. F., Sánchez-Ballesta, J. P., & Yagüe, J. (2017). Does mandatory IFRS adoption affect data asymmetry in...
  • Abdallah, A., Abdallah, W., & Ahmad, I. (2012). Do accounting standards matter to financial analysts? An empirical analysis of the effect...
  • Aledo Martínez, J., Abellán Martínez, D., & Lin, H. (2014). The value relevance of accounting numbers under international financial reporting...
  • Alon, A., & Dwyer, P. D. (2014). Early adoption of IFRS as a strategic response to transnational and local influences. The International...
  • Armstrong, C., Barth, M., Jagolinzer, A., & Riedl, E. J. (2010). Market reaction to the adoption of IFRS in Europe. The Accounting Review,...
  • Ashbaugh, H. (2001). Non-US firms’ accounting standard choices.Journal of Accounting and Public Policy, 20(2), 129–153.http://dx.doi.org/10.1016/150278-4254(01)00025-4
  • Barth, M., Landsman, W. R., & Lang, M. (2008). International accounting standards and accounting quality. Journal of Accounting Research,...
  • Barth, M., Landsman, W. R., Lang, M., & Williams, C. (2012). Are IFRS-based and USGAAP-based accounting amounts comparable? Journal of...
  • Brochet, F., Jagolinzer, A. D., & Rield, E. J. (2013). Mandatory IFRS adoption andfinancial statement comparability. Contemporary Accounting...
  • Brown, L. D. (2001). A temporal analysis of earnings surprises: Profit versus losses. Journal of Accounting Research, 39(2), 221–242.http://dx.doi.org/10.1111/1475-679x.0010
  • Brown, P., Taylor, S., & Walter, T. (1999). The impact of statutory sanctions on the level and data content of voluntary corporate disclosure....
  • Byard, D., Li, Y., & Yu, Y. (2011). The effect of mandatory IFRS adoption on financial analysts’ data environment. Journal of Accounting...
  • Callao, S., Jarne, J. I., & Laínez, J. A. (2007). Adoption of IFRS in Spain: Effect on the comparability and relevance of financial reporting....
  • Callao, S., Ferrer, C., Jarne, J. I., & Laínez, J. A. (2009). The impact of IFRS on the European Union. Is it related to the accounting...
  • Callao, S., & Jarne, J. I. (2010). Have IFRS affected earnings management in the European Union? Accounting in Europe, 7(2), 159–189.http://dx.doi.org/10.1080/17449480.2010.511896
  • Chen, T.-Y., Chin, C.-L., Wang, S., & Yao, W.-R. (2015). The effects of financial reporting on bank loan contracting in global markets:...
  • Choi, Y.-S., Peasnell, K., & Toniato, J. (2013). Has the IASB been successful in making accounting earning more useful for prediction...
  • Christensen, H. B., Hail, L., & Leuz, C. (2013). Mandatory IFRS reporting and changes in enforcement. Journal of Accounting and Economics,...
  • Consejo Europeo. (2000). Conclusiones del Consejo Europeo de Lisboa, 23 y 24 de marzode 2000.
  • Cutillas-Gomariz, M. F., Sánchez-Ballesta, J. P., & Yagüe, J. (2016). The effects of IFRSon net income and earnings components: Value...
  • Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences....
  • Daske, H., Hail, L., Leuz, C., & Verdi, R. (2013). Adopting a label: heterogeneity inthe economic consequences around IAS/IFRS adoptions....
  • Forner, C., & Sanabria, S. (2010). Post-earnings announcement drift in Spain and behavioural finance models. European Accounting Review,...
  • García Lara, J. M., Rueda Torres, J. A., & Vázquez Veira, P. J. (2008). Conservatism of earnings reported under International Accounting...
  • Garrido-Miralles, P., & Sanabria-García, S. (2014). The impact of mandatory IFRS adoption on financial analysts’ earnings forecast in...
  • Garrido, P., & Vázquez, P. J. (2011). The transition to international financial reporting standards in Spain: Relevance and timeliness...
  • Healy, P. M., & Palepu, K. G. (2000). A review of the empirical disclosure literature. Working paper. Graduate School of Business. Harvard...
  • Hope, O. (2003). Disclosure practices enforcement of accounting standards and analysts forecasts accuracy. Journal of Accounting Research,...
  • Hope, O.-K., Jin, J., & Kang, T. (2006). Empirical evidence on jurisdictions that adopt IFRS. Journal of International Accounting Research,...
  • Horton, J., Serafeim, G., & Serafeim, I. (2013). Does mandatory IFRS adoption improvethe data environment?’. Contemporary Accounting Research,...
  • Íñiguez Sánchez, R., Poveda Fuentes, F., & Vázquez Veira, P. (2013). Evolución del conservadurismo de balance con la implantación de las...
  • Johnson, S. (2009). Guessing the costs of IFRS conversion. CFO Publishing. Retrieved from http://www.cfo.com/printable/article.cfrn/133399306
  • Khurana, I. K., & Michas, P. N. (2011). Mandatory IFRS adoption as the U.S. home bias.Accounting Horizons, 25(4), 729–753. http://dx.doi.org/10.2308/acch-50075
  • Lang, M., & Lundholm, R. (1996). Corporate disclosure policy and analyst behaviour. The Accounting Review, 71(4), 467–492.
  • Li, S. (2010). Does mandatory adoption of international financial reporting standards in the European Union reduce the cost of equity capital?...
  • Preiato, J., Brown, P., & Tarca, A. (2015). A comparison of between-country measures of legal setting and enforcement of accounting standards....
  • Reglamento (CE) n◦1606/2002 del Parlamento Europeo y del Consejo de 19 de juliode 2002 relativo a la aplicación de normas internacionales...
  • Tan, Hongping, Wang, Shiheng, & Welker, Michael. (2011). Analyst following and forecast accuracy after mandated IFRS adoptions. Journal...
  • White, J. (2007). Seeing down the road: IFRS and the U.S. capital markets. Speech at NYSE/Brooklyn Law School Breakfast Roundtable.
  • Zhou, H., Xiong, Y., & Ganguli, G. (2009). Does the adoption of international financial reporting standards restrain earnings management?...