Do Adoptions of International Financial Reporting Standards Enhance Capital Investment Efficiency?

Biddle, Gary C.; Callahan, CM; Hồng, Hà Kim; Rl, Knowles

doi:10.2139/ssrn.2353693

Cited by 34 publications

(33 citation statements)

References 43 publications

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“…Examples for studies in the first bin are Biddle et al. [], Schleicher, Tahoun, and Walker [], and Chen, Young, and Zhuang []. All three studies examine the efficiency of firms’ investment decisions, following mandatory IFRS adoption.…”

Section: Evidence On the Economic Effects Of Mandated Reporting Standmentioning

confidence: 99%

The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research

Leuz

Wysocki

2016

J of Accounting Research

1,337

382

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This paper discusses the empirical literature on the economic consequences of disclosure and financial reporting regulation, drawing on U.S. and international evidence. Given the policy relevance of research on regulation, we highlight the challenges with (1) quantifying regulatory costs and benefits, (2) measuring disclosure and reporting outcomes, and (3) drawing causal inferences from regulatory studies. Next, we discuss empirical studies that link disclosure and reporting activities to firm-specific and market-wide economic outcomes. Understanding these links is important when evaluating regulation. We then synthesize the empirical evidence on the economic effects of disclosure regulation and reporting standards, including the evidence on International Financial Reporting Standards (IFRS) adoption. Several important conclusions emerge. We generally lack evidence on market-wide effects and externalities from regulation, yet such evidence is central to the

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Section: Evidence On the Economic Effects Of Mandated Reporting Standmentioning

confidence: 99%

The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research

Leuz

Wysocki

2016

J of Accounting Research

1,337

382

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“…Moreover, studies concerning IFRS adoption benefits toward accounting quality have been conducted. Some of the benefits are increasing accounting quality (Barth et al, 2007), decreasing of income smoothing (Gebhardt and Novotny-Farkas 2011), promoting investment efficiency (Biddle et al, 2011), and improving the market's intermediating function (Horton et al, 2008). In contrast, non value added results also found as the IFRS adoption, no improvement of information's value relevance (Negash (2007) in Negash (2008)) and decreasing earning quality (Kabir et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

Does IFRS Convergence Promote the Value Relevance of Accounting Information?

Kristanto

2016

jeb

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“…Measuring investment efficiency based on the sensitivity of investments to cash flows, the authors report results that are consistent with these predictions, i.e., reductions in investment-cash flow sensitivity following IFRS adoption are greater for insider economies and for smaller firms. Biddle, Callahan, Hong, and Knowles (2013) extend these findings to a larger sample and adopt a difference-in-differences approach that encompasses both IFRS-adopting and non-IFRSadopting countries and show that the conclusions of Schleicher et al (2010) are robust. Chen, Young, and Zhuang (2013) Relatedly, Loureiro and Taboada (2015) examine whether and how IFRS adoption affects the sensitivity of managerial decisions to stock price information, i.e., whether insiders can "learn" from outsiders.…”

Section: Ifrs and Corporate Investment Efficiencymentioning

confidence: 68%