The Impact of Mandatory IFRS Adoption on IPOs in Global Capital Markets

• 成果类型: Article
• 署名作者: Hong, Hyun A.; Hung, Mingyi; Lobo, Gerald J.
• 署名单位: University of California System; University of California Riverside; Hong Kong University of Science & Technology; University of Southern California; University of Houston System; University of Houston
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50720
• 发表日期: 2014
• 页码: 1365-1397
• 关键词: earnings management; HOME BIAS; INFORMATION; INVESTMENT; QUALITY; STANDARDS; price; US

摘要

This study examines the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets. Using a difference-in-differences design, we find a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following mandatory IFRS adoption. We also find that mandatory IFRS adoption has a greater impact on IPO underpricing and relative foreign proceeds for firms in countries with a larger number of accounting changes, and this relation is more pronounced among firms in countries with stronger implementation credibility. In addition, we find that the decrease in underpricing associated with mandatory IFRS adoption holds for both domestic IPOs and global IPOs, and this effect is more pronounced for global IPOs than for domestic IPOs. Overall, our study contributes to the literature by documenting the impact of changes in financial accounting standards on IPO underpricing and capital market globalization.