The effects of mandatory IFRS adoption on financial analysts’ forecast: Evidence from Jordan

Masoud, Najeb

doi:10.1080/23311975.2017.1290331

Cited by 16 publications

(27 citation statements)

References 79 publications

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“…The studies by Ashbaugh and Pincus (2001), Djatej et al (2008), Ernstberger, Krotter andStadler (2008), Bae, Tan and Welker (2008), Tan, Wang and Welker (2011), Jiao et al (2012), Petaibanhue, Walker and Lee (2015, Masoud (2017) inferred positive relationship between change in accounting standard and analysts' performance. As for the research by Pessotti (2012), Barnive and Myring (2014), Gatsios (2013), Martinez and Dumer (2012) and Kim, Kim and Know (2015) indicated a negative or non-significant relationship for such relationship.…”

Section: Discussionmentioning

confidence: 98%

“…Petaibanhue, Walker and Lee (2015) examined the comparability benefits of the accuracy of analysts' forecasts after the adoption of IFRS in the European Union; the evidence indicated that IFRS pre-adoption forecasts are less comparable than the pre-adoption forecasts of IFRS. Masoud (2017) examined the effect of the mandatory adoption of IFRS on the ability of financial analysts to accurately forecast profits in developing countries, Jordan, in the period from 2002 to 2013, showing that over time, forecast errors have been reduced after the adoption of IFRS.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Despite Martinez and Dumer (2014) having already signaled a reduction in the accuracy of analysts' forecast post-convergence to IFRS in Brazil, Masoud (2017), who analyzed the impact of the adoption of IFRS on market analysts' forecasting in an emerging country such as Jordan, pointed out that analysts' forecasting errors were reduced by the convergence of their accounting standard to IFRS.…”

Section: Introductionmentioning

confidence: 99%

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Market-Oriented Accounting Standard and Analysts’ Performance: Evidence from Brazil

Oliveira¹,

Coelho²

2018

BBR

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This research investigates if the accounting standard oriented to external users contributes to improve decision-making in the market, represented by analysts' forecast capacity. The hypothesis is that the forecast properties for Brazilian companies' EPS were not impacted by the change in the accounting standard. The data refer to the period 2004-2014; we employed linear multiple regression, estimated through panel data to investigate the accuracy and precision and logistic regression to scrutinize biases. Our findings indicated, with significance, that the analysts' forecasts did not improve, thus, not rejecting the hypothesis. It was highlighted that in the convergence with the new accounting standard, the pessimistic bias was foregrounded, bringing forth analysts' conservatism; the accuracy diminished with the new standard and the precision between periods was not altered. This research lacks depth, considering its low coefficients of determination, and in the sense of determining the causes of such behavior. An inquiry about the utilization of accounting information by analysts was also generated due to the magnitude of the forecast errors detected.

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Section: Discussionmentioning

confidence: 98%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Market-Oriented Accounting Standard and Analysts’ Performance: Evidence from Brazil

Oliveira¹,

Coelho²

2018

BBR

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“…On the other hand, the signalling theory indicates that the adoption of IFRS can be considered as a credible signal of higher quality and transparency of financial disclosure and lower information asymmetry through the increase in forecasts accuracy (Masoud, 2017).…”

Section: Signalling Theorymentioning

confidence: 99%

“…In France, IFRS inserted an exogenous and unique change in the level of mandatory disclosure in response to increased capital-market request (de La Bruslerie and Gabteni, 2014). In fact, the implementation of IFRS is considered by signalling theory as a positive signal of higher quality and transparency of financial disclosure (Masoud, 2017). In addition, financial disclosure quality was raised by having effective corporate board which promotes corporate transparency (Barros et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

Board characteristics, IFRS adoption and voluntary disclosure: evidence from management forecasts accuracy in France

Hlel

Nafti

2019

IJMED

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In this article, we examine whether the IFRS adoption and the strong corporate board contribute effectively to reduce the information asymmetry by enhancing the quality of voluntary disclosure in the case of French IPOs. Our measure of disclosure quality is denoted by the absolute forecast error as a proxy for management earnings forecasts accuracy. We find evidence that the adoption of IFRS gives a credible signal of higher disclosure quality and lower information asymmetry through the improvement of the management earnings forecasts accuracy. Also, we find that the independent and larger boards do play an important role in promoting corporate transparency by conveying more accurate earnings forecasts. These findings suggest that future shareholders can benefit from receiving better forecasts. Accurate management forecasts can allow them to identify the companies they want to invest in, and to reduce the costs of adverse selection that they have to face.

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Analysis of factors affecting the adoption of IFRS in an emerging economy

Nguyen

2023

Heliyon

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The effects of mandatory IFRS adoption on financial analysts’ forecast: Evidence from Jordan

Cited by 16 publications

References 79 publications

Market-Oriented Accounting Standard and Analysts’ Performance: Evidence from Brazil

Market-Oriented Accounting Standard and Analysts’ Performance: Evidence from Brazil

Board characteristics, IFRS adoption and voluntary disclosure: evidence from management forecasts accuracy in France

Analysis of factors affecting the adoption of IFRS in an emerging economy

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