Investor Perceptions of Potential IFRS Adoption in the United States

• 成果类型: Article
• 署名作者: Joos, Philip P. M.; Leung, Edith
• 署名单位: Tilburg University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50338
• 发表日期: 2013
• 页码: 577-609
• 关键词: international accounting standards; Sarbanes-Oxley Act; economic consequences; earnings management; equity; disclosure; cost; incentives; QUALITY; PRIVATE

摘要

This paper examines the stock market reaction to 15 events relating to IFRS adoption in the United States. The goal is to assess whether investors perceive the switch to IFRS as beneficial or costly. Our findings suggest that investors' reaction to IFRS adoption is more positive in cases where IFRS is expected to lead to convergence benefits. Our results also indicate a less positive market reaction for firms with higher litigation risk, which is consistent with investors' concerns about greater discretion and less implementation guidance under IFRS for these firms. Overall, the findings are relevant to the current debate on IFRS adoption in the U.S. and highlight the importance of convergence to investors.