The information content of annual earnings announcements and mandatory adoption of IFRS

• 成果类型: Article
• 署名作者: Landsman, Wayne R.; Maydew, Edward L.; Thornock, Jacob R.
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; University of Washington; University of Washington Seattle
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2011.04.002
• 发表日期: 2012
• 关键词: accounting standards; Investor protection; PRIVATE; incentives; management; income; price

摘要

This study examines whether the information content of earnings announcements - abnormal return volatility and abnormal trading volume - increases in countries following mandatory IFRS adoption, and conditions and mechanisms through which increases occur. Findings suggest information content increased in 16 countries that mandated adoption of IFRS relative to 11 that maintained domestic accounting standards, although the effect of mandatory IFRS adoption depends on the strength of legal enforcement in the adopting country. Utilizing a path analysis methodology, we find evidence of three mechanisms through which IFRS adoption increases information content: reducing reporting lag, increasing analyst following, and increasing foreign investment. (C) 2011 Elsevier B.V. All rights reserved.