Mandatory adoption of IFRS in emerging markets: the case of Turkey

Temiz, Hüseyin; Güleç, Ömer Faruk

doi:10.24818/jamis.2017.04007

Cited by 9 publications

(7 citation statements)

References 27 publications

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“…After the switch to IFRS standards, the accounting numbers presented a weaker association with the stock price. The case of Turkey (Temiz and Güleç, 2017) showed on the contrary positive effect of IFRS adoption, it was confirmed that accounting information produced under IFRS became more value relevant. The study of IFRS adoption in Iraq (Khdir and Bialek-Jaworska, 2020) provided evidence that mandatory IFRS adoption didn't improve financial information comparability As far as it's known, there are no individual studies for Russia related to the comparability of financial information after IFRS adoption.…”

Section: Literature Reviewmentioning

confidence: 64%

IFRS Adoption and the Financial Statements Comparability: The Case of Russia and Canada

Dolgikh¹

2022

EFAJ

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The effect of International Financial Reporting Standards (IFRS) adoption on the level of financial statements comparability was investigated for Russia in the current article. Canada was chosen for comparison due to the close time frame of IFRS adoption, which also allowed comparing the influence of IFRS adoption for both types of economieswell developed and emerging. Initial sample selection had been created from 23 companies that are presented on the stock exchange markets of the particular countries. Each sample contains semi-annual data for four years of the preadoption period (2008 to 2011 for Russia, 2007 to 2010 for Canada) in which companies use their home country accounting standards and four years of the postadoption period (2012 to 2015 for Russia, 2011 to 2014 for Canada) in which companies use IFRS standards. The research was performed on the country level and industry level for both countries. Two measures had been used for the research: earnings-return regression and earnings-cash flow regression. The overall result of the study shows that the application of IFRS improved information comparability between companies only in Canada, while the same was not the case for Russian companies and the cross-country comparability. However, the study confirms an increase in the comparability level in the post-adoption period in such industries as Energy and Basic materials not only between companies inside of the given country but on the cross-country level as well.

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Section: Literature Reviewmentioning

confidence: 64%

IFRS Adoption and the Financial Statements Comparability: The Case of Russia and Canada

Dolgikh¹

2022

EFAJ

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“…Kargin (2013) found that the market value of Turkish firms was value relevant with respect to book value and earnings. Another research (Temiz & Gulec, 2017) in Turkey also highlights a gradual increase in the value relevance with the transition from local standards to IFRS. A comparative study in Jordan by Daas (2014) measured the impact on accounting quality during three phases i.e.…”

Section: H1: the Reported Earnings (Eps) And Equity Book Values (Bvps...mentioning

confidence: 97%

“…We followed the 'same firm-year' design during the entire period of study (Ibiamke & Ajekwe, 2017;Outa et al, 2017;Temiz & Gulec, 2017) and the complete sample of 5460 observations was used to test the value relevance as well as the impact of IFRS on value relevance. For the comparative analysis, the data were equally partitioned between the pre-mandatory convergence period (2013-14 to 2014-15) and post-mandatory convergence period (2017-18 to 2018-19).…”

Section: Population and Samplingmentioning

confidence: 99%

“…Similar recent empirical studies have assessed the impact of IFRS on value relevance globally (Alnodel, 2018;Atoyebi, Salaudeen, & Onyilokwu, 2018;Elbakry et. al., 2017;Ki et al, 2019;Kouki, 2018a;Nijam & Jahfer, 2016;Odoemelam, Okafor, & Ofoegbu, 2019;Outa et al, 2017;Temiz & Gulec, 2017;Wu et al, 2017) by employing the Ohlson (1995) model.…”

Section: Models and Variablesmentioning

confidence: 99%

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IFRS Convergence and Value Relevance of Accounting Information: Evidence from Indian Financial Reporting

Gomes¹,

Costa²

2022

IJBS

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International studies have recorded evidences of improved accounting information attributed to the adoption of International Financial Reporting Standards (IFRS). The concurrent literature is however, scant in India. This study is one of the first of its kind to explore value relevance in the context of financial reporting for a large sample in India since IFRS convergence. The paper examines the value relevance of financial reporting of firms listed on the National Stock Exchange (NSE) in India by employing the Ohlson, (1995) Price Model. It aims to identify whether fundamental accounting variables like book value per share (BVPS) and earnings per share (EPS) are more value relevant after the IFRS converged Indian Accounting Standards (IndAS) became mandatory for listed firms. The hypotheses are tested using multivariate panel regressions on the annual data of 910 listed firms from 2013-14 to 2018-19 – resulting in 5460 observations – to include the pre and post mandatory convergence periods. The study documents a statistically significant association between stock prices of our sample firms and their key accounting variables (BVPS and EPS) along with an increase in the explanatory power of the model during the post mandatory convergence period.

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“…In the Turkish market, the transfer to IFRS triggered research on the influence of profit and net assets on stock prices from 2001 to 2008 [30]. The selection was divided into two sub-selections: before and after implementation of IFRS.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Corporate Governance on the Cost of Equity for Russian Companies in the Ohlson Model

Khassanov¹

2021

КФ

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The purpose of this paper is to identify key indicators of corporate governance that affect the market value of Russian companies. To this end, we examine the possibility of modifying the Ohlson model of evaluating stock price dynamics in public companies, by adding corporate governance variables that may affect market value. The study consists of the following stages: the key points of the Ohlson economic model are described, empirical works that demonstrate corporate governance as a factor in assessing the value of companies are presented, and the significance of the modified Ohlson model for the Russian market is evaluated. The novelty of our methodology is represented in the prioritisation of our “other information” parameter, which is a combination of forecast analytical data and corporate governance indicators. Through analysis of panel data, we estimate differences in the predicted net profit indicator, calculated as the average of analyst forecasts for an individual company for a financial year, and the actual net profit. Corporate governance is represented by the percentage of board members holding professional certificates and licenses, the average term of board of directors members, the share of independent members on the board of directors, the share of independent members in the audit committee, the proportion of women on the board of directors, and the size of the board of directors. Our results indicate dependence of share prices on the dynamics of the book value of equity, abnormal profits, the share of board members holding professional qualifications, the difference between the actual net profit and the forecast net profit of companies, and the level of gender diversification in the board of directors. The results of our analysis of deviations in average stock prices are comparable to the findings of existing literature examining the markets of Europe, Latin America and Africa.

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Mandatory adoption of IFRS in emerging markets: the case of Turkey

Cited by 9 publications

References 27 publications

IFRS Adoption and the Financial Statements Comparability: The Case of Russia and Canada

IFRS Adoption and the Financial Statements Comparability: The Case of Russia and Canada

IFRS Convergence and Value Relevance of Accounting Information: Evidence from Indian Financial Reporting

The Impact of Corporate Governance on the Cost of Equity for Russian Companies in the Ohlson Model

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