Accounting Standards Harmonization and Financial Integration

• 成果类型: Article
• 署名作者: Dhaliwal, Dan; He, Wen; Li, Yan; Pereira, Raynolde
• 署名单位: University of Arizona; University of Queensland; University of Melbourne; University of Missouri System; University of Missouri Columbia
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12495
• 发表日期: 2019
• 页码: 2437-2466
• 关键词: MANDATORY IFRS ADOPTION; reporting standards; MILD SEGMENTATION; european-union; Price delay; HOME BIAS; improve; IMPACT; cost; LIBERALIZATION

摘要

We empirically examine whether adopting a uniform set of accounting standards mitigates information frictions in financial markets and facilitates market integration. Using a difference-in-difference design, we find that after the mandatory adoption of IFRS local stock returns incorporate more global information and at a faster speed. The effect of IFRS adoption is stronger in countries where there are larger improvements in accounting comparability and for firms with a larger increase in foreign ownership. Overall, our results suggest that accounting standards harmonization facilitates financial market integration.