Do Accounting Standards Matter for Productivity?

• 成果类型: Article
• 署名作者: Banker, Rajiv; Huang, Rong; Li, Yinghua; Zhao, Sha
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Fudan University; Arizona State University; Arizona State University-Tempe; Oakland University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.13257
• 发表日期: 2021
• 页码: 68-84
• 关键词: productivity; accounting standards; IFRS; information environments

摘要

In this study, we examine whether productivity shifts when accounting standards change. Using mandatory International Financial Reporting Standards (IFRS) as a shock to the accounting regime, we examine the changes in country-level productivity. We find that mandatory IFRS-adopting countries experience significant increases in total factor productivity (TFP) and labor productivity. The post-adoption productivity improvements are greater for countries without IFRS convergence. Further, TFP increases more for countries that experience a larger increase in industry comparability. Taken together, the evidence suggests that the new IFRS accounting regime increases economic productivity via improving information environments and facilitating internal firm decisions.