The effect of IFRS adoption on the value relevance of accounting information: evidence from South Korea

Ki, Do Hoon; Leem, Wook Bin; Yuk, Jee Hoon

doi:10.21511/imfi.16(2).2019.07

Cited by 9 publications

(2 citation statements)

References 18 publications

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“…These guidelines carry significant importance for investors, creditors, and other stakeholders as they seek to evaluate a company's financial well-being (Lawal et al, 2020;Salah and Abdel-Salam, 2019). In light of the escalating complexity surrounding financial reporting, it has become indispensable for companies to provide reports that are both detailed and easily comprehensible (Do et al, 2019). By adhering to this standard, companies ensure that investors, creditors, and other stakeholders can access the information necessary for making informed decisions (Sun et al, 2021).…”

Section: Ifrs 17 and Understandability Of The Financial Reportsmentioning

confidence: 99%

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Hemant Kumar, Dr. Ranjul Rastogi

2023

tjjpt

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Purpose: Investigating the perspectives of finance professionals on the influence of Implementing IFRS 17 Insurance Contracts on the quality of financial report. Design and Methodology: This study utilized a self-administered questionnaire to collect data from finance professionals employed in insurance companies. The survey samples were drawn from the target population using a combination of conventional and snowball sampling techniques. The study and survey were conducted in India. A total of 532 questionnaires were distributed, resulting in 237 received responses. Out of these, 231 responses were considered complete and used for further data analysis. Findings/Results: The study's findings indicate that the application of IFRS 17 will result in a substantial impact on the relevance, faithful representation, comparability, understandability, verifiability, and timeliness of financial reports. Furthermore, it was found that implementing IFRS 17 enables investors and decision-makers to make informed decisions. Suggestions: This study carries implications for insurance companies and policymakers, particularly regarding the significance of IFRS 17 as a major accounting change in the insurance industry in recent decades. It underscores the importance for insurance companies and policymakers to gain a comprehensive understanding of the business and technical aspects associated with IFRS 17. By aligning their finance transformation programs with IFRS 17 compliance, insurance companies can efficiently and strategically achieve compliance while maximizing the benefits of the new standard. Originality/Value: This study contributes to the existing literature on IFRS 17 by developing a unique conceptual framework. Building upon the variables utilized in the study by Dahiyat and Owais (2021), the present study introduces a new independent variable, enabling investors and participants to make decisions. Consequently, this study brings significant novelty by incorporating seven dependent variables. The findings presented in this paper contribute to the understanding of IFRS 17 and its implications. Furthermore, this study holds particular significance as it is the first empirical investigation conducted in the global context, providing valuable insights into the implementation of IFRS 17. Limitations/Implications: Due to the novelty of the topic and limited research in this area, there is a scarcity of comparative studies available. Moreover, the availability of experienced financial professionals well-versed in the impact of IFRS 17 is limited, as they are still in the process of learning and adapting to the new standard.

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Section: Ifrs 17 and Understandability Of The Financial Reportsmentioning

confidence: 99%

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Hemant Kumar, Dr. Ranjul Rastogi

2023

tjjpt

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“…The findings revealed that conditional conservatism was positively (negatively) related to value relevance prior to (post) mandatory IFRS adoption. Ki, Leem and Yuk (2019) investigated whether the value relevance of accounting information changed after IFRS adoption in South Korea. Related prior studies had found mixed empirical evidence depending on research methodologies or research periods.…”

Section: Empirical Reviewmentioning

confidence: 99%

International Financial Reporting Standards (Ifrs) Adoption and the Value Relevance of Accounting Information in Selected African Countries

Osamwonyi,

Mary,

Ekundayo

2023

DIEM Dubrovnik International Economic Meeting

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The focus of the study was on examining International Financial Reporting Standard (IFRS) Adoption and The Value Relevance of Accounting Information in Selected Africa Countries: A Comparative Analysis of Nigeria and South Africa. The focus on cross country analysis in the subject of IFRS adoption and value relevance is growing quite slowly. However. Cross country empirical studies for countries in Africa continent is largely non-existent or at best difficult to find. This study address this gap by adopting a cross-country approach using Nigeria and South Africa. The study employed a longitudinal research design. The population and the sample of the study comprised the top companies in each country by way of market capitalization for the countries in the study, namely: Nigeria and South Africa as at December, 2019. The convenience sampling technique was used in the study to select listed firms across the two countries. Secondary data sourced from corporate annual reports of the sampled quoted firms got from the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE) were used for the study. The study made use of panel data regression and the results revealed that for South-Africa, Earnings Per Share (EPS) and EPS*IFRS were both positive respectively, and also statistically significant. Book Value Per Share (BVPS) and BVPS*IFRS were both positive respectively, and also statistically significant. Dividends Per Share (DPS) and DPS*IFRS were both positive respectively, and were also statistically significant. Intangible Assets (INTA) was not value relevant in the pre-IFRS period given the absence of the statistical significance of the variable, but show some evidence of weak incremental relevance from IFRS adoption as the interaction between INTA*IFRS was significant. Cash Flow Per Share (CFPS) was positive and significant; and furthermore, the interaction of CFPS*IFRS was also positive and statistically significant. For Nigeria, EPS and EPS*IFRS are both positive respectively, with EPS statistically significant. BVPS and BVPS*IFRS are both positive respectively, with only BVPS statistically significant. Furthermore, DPS and DPS*IFRS are both positive respectively, and statistically significant. INTA and INTA*IFRS are both insignificant respectively. Finally, CFPS is positive, though not significant; but the interaction of CFPS*IFRS is positive and significant. It therefore implies that, EPS*IFRS, BVPS*IFRS, DPS*IFRS, INTA*IFRS, CFPS*IFRS shows whether EPS, BVPS, DPS, INTA, CFPS reflects a stronger statistical significance in explaining share price when interacted with IFRS adoption (post) than without it (pre) in the two selected Countries( Nigeria and South Africa) . The study concluded that, there is the need for capital markets in developing countries to become more efficient and for companies and accounting regulatory institutions to ensure timely and quality disclosures of accounting information. It recommended that stock exchanges in developing markets should put a frame-work in place that measure the rate of compliance of each listed firm’s annual report with IFRS demands to enable the sanctioning of firms that recorded below the expected compliance level. The study also recommended amongst others, that financial reporting councils and accounting standards setting bodies globally should support the effort to ensure improved compliance with IFRS as a matter of policy.

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Can IFRS adoption mitigate earnings management in an emerging market?

Mohamed Amer,

Azimli,

Wole Adedokun

2024

Heliyon

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The effect of IFRS adoption on the value relevance of accounting information: evidence from South Korea

Cited by 9 publications

References 18 publications

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

International Financial Reporting Standards (Ifrs) Adoption and the Value Relevance of Accounting Information in Selected African Countries

Can IFRS adoption mitigate earnings management in an emerging market?

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