Disentangling mandatory IFRS reporting and changes in enforcement

• 成果类型: Article
• 署名作者: Barth, Mary E.; Israeli, Doron
• 署名单位: Stanford University; Reichman University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2013.11.002
• 发表日期: 2013
• 关键词: consistent covariance-matrix; economic consequences; heteroskedasticity

摘要

We discuss Mandatory IFRS Reporting and Changes in Enforcement by Christensen, Hail, and Leuz (CHL, in this issue). We begin by discussing CHL in the context of prior literature, and subsequently discuss the research design, results, and inferences. CHL seeks to contribute to the literature by disentangling the liquidity benefits of changes in accounting standards from those of changes in enforcement. Taken at face value, we believe that the evidence in CHL suggests that both change in enforcement and adoption of International Financial Reporting Standards (IFRS) confer liquidity benefits. The largest benefits obtain when the change to IFRS reporting is combined with change in enforcement. This is not to say that enforcement conveys capital market benefits but IFRS reporting does not, or that IFRS reporting conveys capital market benefits but enforcement does not; both are necessary to confer capital market benefits. (C) 2013 Elsevier B.V. All rights reserved.