The Effect of IFRS Adoption Conditional Upon the Level of Pre-adoption Divergence

Cai, Lei; Rahman, Asheq; Courtenay, Stephen M.

doi:10.1016/j.intacc.2014.04.004

Cited by 65 publications

(87 citation statements)

References 39 publications

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“…Overall, the results of the regression analysis support our initial conjecture that certain firms' characteristics are strongly associated with the likelihood of IFRS adoption and suggest strong extenuating effects of jurisdictions on the tested relationships [46][47][48][49][50][51][52]. While the results for the overall sample of early (voluntary) adopters vs. non-adopters do not show the strong significant association for all tested regress and (only a number of foreign subsidiaries and a size have a significant impact on the odds of early adoption), after disaggregating the sample into four groups correlated with origins, the results become much stronger.…”

Section: Literature Review and Hypothesessupporting

confidence: 61%

Corporate Characteristics Motivating Standardization: The Case of Accounting Convergence in European Union

Krivogorsky¹,

Chang²,

El³

2016

International JAR

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To identify how corporate characteristics impact the decision to converge, we tested three groups of European firms assigned into a group by the time of the IFRS adoption. Following the theory on network externalities, we hypothesize that companies with more business complexity and higher value benefit from a positive network effect and therefore, represent a driving force in accounting standardization. We provide evidence, that a firm's business complexity and valuation characteristics have a significant impact on IFRS adoption. We also document that the extenuating effects of jurisdictions and national levels of bureaucratic formalities in business are factors that affect firms' IFRS adoption decisions.

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Section: Literature Review and Hypothesessupporting

confidence: 61%

Corporate Characteristics Motivating Standardization: The Case of Accounting Convergence in European Union

Krivogorsky¹,

Chang²,

El³

2016

International JAR

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“…Ding et al (2007) report that the accounting standards in the countries with the German and French law families are large deviations from IAS and that the improvement of earnings quality is observed in those countries, consistent withZeghal et al (2012) andCai et al (2014).16 The enforcement of the accounting standard inHouqe et al (2012) is provided by the World Economic Forum (2008).…”

mentioning

confidence: 76%

Cross-Country Research on Earnings Quality: A Literature Review and Future Opportunities

Enomoto

2018

SSRN Journal

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Yamaguchi. I would like to thank the financial support of JSPS KAKENHI Grant Number 17K04053 and 15K03763. A part of the Japanese version of this paper served as a basis of an invited talk at the 2017 Annual Conference of Japan Accounting Association titled "Large-scaled accounting data and crosscountry research." A summarized manuscript of this talk was published in Kaikei (Accounting) in 2018 (in Japanese).

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“…Houqe et al (2012) show that the earnings of firms implementing the IFRS are of high quality under specific conditions. Similarly, Ahmed et al (2013) show that the information content of earnings has increased after the implementation of IFRS under certain conditions (see also Cai et al, 2014). In addition, firms must account for future economic conditions when estimating the value in use of an asset in order to examine this asset for impairment (IAS 36,par.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Aggregate Accounting Data and the Prediction of Credit Risk

2019

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A recent area of accounting research concerns the ability of changes in aggregate earnings to predict various macroeconomic fundamentals. We extend this line of research and examine whether changes in aggregate earnings convey information regarding the changes in future sovereign risk, which is considered a proxy for changes in aggregate risk. The results of the study indicate that aggregate earnings changes have predictive ability for sovereign credit risk. This result persists even after controlling for liquidity and indicators of macroeconomic imbalance, as well as under alternative research specifications. We also find that in some of the research specifications, future sovereign credit risk is affected by earnings management. In general, our results point towards the presence of significant information in earnings that is related to future sovereign risk.

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The Effect of IFRS Adoption Conditional Upon the Level of Pre-adoption Divergence

Cited by 65 publications

References 39 publications

Corporate Characteristics Motivating Standardization: The Case of Accounting Convergence in European Union

Corporate Characteristics Motivating Standardization: The Case of Accounting Convergence in European Union

Cross-Country Research on Earnings Quality: A Literature Review and Future Opportunities

Aggregate Accounting Data and the Prediction of Credit Risk

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