Impact of Adopting Ifrs Standard on the Equity Cost of Brazilian Open Capital Companies

Abstract

Este artigo pode ser copiado, distribuído, exibido, transmitido ou adaptado desde que citados, de forma clara e explícita, o nome da revista, a edição, o ano e as páginas nas quais o artigo foi publicado originalmente, mas sem sugerir que a RAM endosse a reutilização do artigo. Esse termo de licenciamento deve ser explicitado para os casos de reutilização ou distribuição para terceiros. Não é permitido o uso para fins comerciais. • Reporting Standards aims to increase the quality of accounting information. Studies performed in Europe suggest that, after the adoption of the IFRS standard, there was a reduction in the equity cost of companies due to the reduction of information asymmetry and risk. Key methodological aspects: The equity cost was calculated using the capital asset pricing model (CAPM) adapted to the Brazilian case. The empirical strategy was the difference analysis in differences, comparing the results of companies that voluntarily adopted the IFRS with companies that adopted IFRS after the mandatory adoption period. Summary of key results:The results indicate that the adoption of the IFRS standard does not contribute to reduce the equity cost in Brazil. Key considerations/conclusions: Suggesting that the process of adopting the international accounting standard may take more time to impact the equity cost of Brazilian open capital companies, since the impact of IFRS is not related only with the adoption, but also with its use by companies and users. KEYWORDSCost of equity. CAPM. IFRS. Quality of accounting information. Brazil.

Does Mandatory Ifrs Adoption and Macroeconomic Factors Affect Cost of Equity Capital? Empirical Evidence From South African Listed Firms

“…However, it was disclosed that IFRS as a variable and also as its interactions with other variables have no significant impact on firms" cost of equity capital and hence the null hypothesis could not be rejected. Our result agrees with the findings of Gatsios et al (2016) which revealed that IFRS adoption does not decrease firms" cost of equity capital in Brazil. Daske (2014) who didn"t find lower anticipated cost of equity capital for IAS/IFRS adopters as well as the result of Patro and Gupta (2014) who found IFRS to have no significant influence on the cost of equity capital of Chinese and Israeli firms.…”

“…Third, this paper utilizes both firm-level and macroeconomic factors as controlling variables from a broader perspective to explain the firms" cost of equity capital as against prior studies. Fourth, this study is first of its kind to allow for longer transition periods (early post-adoption 2006-2009 and late post-adoption 2011-2014) in IFRS adoption effect on the cost of equity capital, as against previous studies (Houqe et al (2015); Gatsios et al (2016); Patro and Gupta (2014);Castillo-Merino et al, 2014;and Daske (2014).…”

Convergence accounting and risk: evidence in brazilian capital market

“…DOI: ********** A importância associada ao processo de convergência promoveu inúmeras pesquisas sobre os mais variados aspectos financeiros. Em relação à estrutura de capital, destacam-se Florou e Kosi (2015), Houqe, Monem e Zijl (2016), Daske et al (2008) e Gatsios et al (2016). Florou e Kosi (2015) investigaram se a introdução obrigatória das Normas Internacionais de Contabilidade (IFRS) estão associadas à propensão de acesso ao mercado de dívida pública e o custo da dívida.…”

“…Particionando a amostra, evidenciou-se que os benefícios no mercado de capitais ocorrem somente em países com incentivos para empresas transparentes e naqueles com estrutura legal robusta. Gatsios et al (2016. Florou e Kosi (2015 investigaram se a introdução obrigatória das Normas Internacionais de Contabilidade (IFRS) estão associadas à propensão de acesso ao mercado de dívida pública e o custo da dívida.…”

“…A literatura financeira tem investigado a influência do processo de adoção das IFRS sob os mais variados constructos, como: Estrutura de Capital (DASKE et al, 2008;FLOROU;KOSI, 2015;HOUQE;MONEM;ZIJL, 2016;GATSIOS et al, 2016); Investimentos (YU; WAHID, 2014; BENEISH; MILLER; YOHN, 2015); Assimetria Informacional (REZENDE; ALMEIDA; LEMES, 2015; ABAD et al, 2017); Gerenciamento de Resultados (CARDOSO et al, 2015;JOIA;NAKAO, 2014); Retorno de Ações (ARMSTRONG et al, 2010;GU et al, 2005;HORTON;SERAFEIM, 2010); Disclosure (WOODS; DOWD; HUMPHREY, 2009; OLIVEIRA; LEMES, 2011; MIIHKINEN, 2012); Informação Contábil (CASTRO et al, 2015;GONÇALVES et al, 2014); Indicadores Financeiros (FARIAS et al, 2014;DIAS;PINHEIRO, 2009) e Risco (DEFOND et al, 2015;SANTIAGO, 2016).…”