Effect of Mandatory IFRS Adoption on Cost of Debt in Turkey

Özkaya, Hakan

doi:10.20409/berj.2018.124

Cited by 4 publications

(4 citation statements)

References 12 publications

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“…Several studies provide evidence on the benefits of the use of the IFRS. Consistent findings across these studies were that the adoption of the IFRS improves a firm's stock liquidity, reduces the cost of capital, and improves corporate performance (Daske, Leuz, & Verdi, 2008;Persakis & Iatridis, 2017;Ozkaya, 2018;Wook-bin & Yuk, 2018). Hope, Jin, and Kang (2006) argued that if firms adopted the IFRS, the quality of their financial reports will increase and hence the capital market will gain a better reputation and hence attract more foreign investments.…”

Section: Literature Reviewmentioning

confidence: 88%

“…The literature has examined the consequences of IFRS adoption and provided evidence that IFRS improves stock market development (Dumontier & Maghraoui, 2006;Daske, Leuz, & Verdi, 2008;Naser, Al-khatib, & Karbhari, 2002;Persakis & Iatridis, 2017;Ozkaya, 2018;Wook-bin & Yuk, 2018). In our research, we tested to see if the adoption of the XBRL and IFRS together provide higher improvements in the stock market development than the adoption of each of them.…”

Section: Research Hypothesesmentioning

confidence: 97%

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The Impact of Adoption of The XBRL on the Development of Stock Markets

Sassi¹,

Othman²,

Hussainey³

2021

APMAJ

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The paper examines the impact of adoption of the eXtensible Business Reporting Language (XBRL) on the development of stock markets using a large international sample. Our analysis was based on panel estimation techniques for 18 countries for a period of 20 years from 2000 to 2019. Our analysis provided empirical evidence that the adoption of the XBRL has a negative impact on the development of stock markets. This implies that strict policies are needed for the successful adoption of the XBRL and also a mechanism is needed to ensure that stakeholders understand the value of the information provided by the XBRL formatted financial reports. Keywords: XBRL, development of capital markets, panel estimation techniques, cross-countries study

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Section: Literature Reviewmentioning

confidence: 88%

Section: Research Hypothesesmentioning

confidence: 97%

The Impact of Adoption of The XBRL on the Development of Stock Markets

Sassi¹,

Othman²,

Hussainey³

2021

APMAJ

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“…Some scholars have focused on the effects of IAS adoption and the cost of the debt and debt markets. For instance, Ozkaya (2018) found evidence that after the IFRS adoption in Turkey, firms in the sample have a significantly lower cost of debt after the adoption year. Florou and Kosi (2015) document positive economic consequences around the mandated IAS/IFRS adoption for corporate debt financing and, in particular, for bond financing.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Some scholars outlined an increase in comparability and transparency of information (Barth et al, 2012;Cascino & Gassen, 2015;Kainth & Wahlstrøm, 2021), while others show how the adoption of the IAS/IFRS improved the liquidity in the financial market (Coyring et al, 2007;Istiningrum, 2020). Still others underline beneficial such as the reduction of the cost of debt (Ozkaya, 2018) and the cost of equity (Li, 2010;de Moura et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Accounting Harmonisation through IAS/IFRS and Internationalisation: Evidence from FDIs and Cross-Border M&A

Montani¹,

Gervasio²,

Pulcini³

et al. 2021

AFR

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The process of accounting harmonisation via International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) adoption is very widespread, and it is still involving a huge number of countries all over the world.Previous academic literature investigated the impact of this process from different perspectives, such as the quality of financial reports, the transparency of financial disclosures, the liquidity of the financial markets and the cost of equity.The aim of this article is to contribute to the research stream exploring the effects of IAS/IFRS adoption, investigating if accounting harmonisation through the IAS/IFRS has had an impact on the internationalisation process. To achieve our objective, two multiple linear regression analyses are presented. The first one focuses on the impact of the adoption of IAS/IFRS on foreign direct investments (FDIs) using data collected from a sample of 34 Organisation for Economic Co-Operation and Development (OECD) member countries. The second statistical analysis investigates the influence of IAS/IFRS adoption on cross-border mergers and acquisitions (M&A), considering operations carried out by European-listed companies towards target companies located in the 34 OECD member countries. The FDIs and cross-border M&A are considered proxies of the internationalisation process.Preliminary results show that the adoption of IAS/IFRS has positively affected FDI flows and increased the value of cross-border M&A.This study has tried to provide theoretical contributions to the literature stream about the effects of the harmonisation process with IAS/IFRS adoption, showing the beneficial impact they may have on the internationalisation process. Moreover, our findings can be useful for policymakers and managers, suggesting that becoming IAS/IFRS adopters can facilitate the internationalisation process of the companies.

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The determinants of eXtensible Business Reporting Language (XBRL) adoption: a cross-country study

Sassi,

Ben Othman,

Hussainey

2023

Int J Discl Gov

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This paper investigates the determinants of eXtensible Business Reporting Language (XBRL) adoption using the Technology-Organizational-Environment framework. This framework explains how the process of adopting and implementing XBRL is influenced by the technological context (country's firm-level technology absorption and technological capacity), organizational context (education) and environmental context (level of economic development; degree of external economic openness; investor protection; accounting system and the burden of government regulation). Using a sample of 78 countries during the period 2009–2017, we find that countries with high levels of technology absorption, higher levels of economic development and strong investor protection are more likely to adopt XBRL.

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Effect of Mandatory IFRS Adoption on Cost of Debt in Turkey

Cited by 4 publications

References 12 publications

The Impact of Adoption of The XBRL on the Development of Stock Markets

The Impact of Adoption of The XBRL on the Development of Stock Markets

Accounting Harmonisation through IAS/IFRS and Internationalisation: Evidence from FDIs and Cross-Border M&A

The determinants of eXtensible Business Reporting Language (XBRL) adoption: a cross-country study

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