The European IFRS experiment: objectives, research challenges and some early evidence

Pope, Peter F.; McLeay, Stuart

doi:10.1080/00014788.2011.575002

Cited by 188 publications

(120 citation statements)

References 54 publications

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“…The informativeness and quality of earnings disclosure is not solely determined by accounting standards alone, but by their enforcement which is critical (Pope and McLeay, 2011). To adopt but not enforce is simply a form of \psuedo-adoption" that investors often see through (Daske et al, 2008).…”

Section: Post-earnings Announcement Drift In Greecementioning

confidence: 99%

Post-Earnings Announcement Drift in Greece

Forbes

Giannopoulos²

2015

Rev. Pac. Basin Finan. Mark. Pol.

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This paper presents evidence regarding the post-earnings announcement drift (PEAD) anomaly for the Greek market in the years 2000-2006 (covering earnings announcements in the years [2001][2002][2003][2004][2005][2006][2007]. The impact of the introduction of International Financial Reporting Standards on the size and prevalence of the PEAD anomaly is examined. Unlike recent evidence for the US market we find PEAD to be alive and well, and of growing importance in our Greek sample. It may be the adoption of international financial reporting standards (IFRS) has served to reduce earnings predictability in Greece and thus enhance PEAD in the Athens stock exchange (ASE) market. This contrasts strongly with US evidence that the postearnings-announcement drift anomaly is now waning as more efficient markets and smarter, fundamentals-based, traders arbitrage its impact on stock prices.

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Section: Post-earnings Announcement Drift In Greecementioning

confidence: 99%

Post-Earnings Announcement Drift in Greece

Forbes

Giannopoulos²

2015

Rev. Pac. Basin Finan. Mark. Pol.

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“…Preparers and users of financial reports and enforcers of financial reporting regulations have a major concern with the International Financial Reporting Standards (IFRS): the significant level of estimation and judgment allowed, and its potential to be used opportunistically in the absence of sound corporate governance (FEE, 2001(FEE, , 2002Pope and McLeay, 2011;US SEC, 2000). One area of accounting that allows a great deal of managerial discretion under the IFRS and has attracted the attention of academics and practitioners for its complexity, is goodwill impairment (Carlin and Finch, 2008;KPMG, 2014).…”

Section: Introductionmentioning

confidence: 99%

The role of corporate governance in accounting discretion under IFRS: Goodwill impairment in Australia

Kabir

Rahman

2016

Journal of Contemporary Accounting & Economics

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A major concern with the adoption of International Financial Reporting Standards (IFRS) is the accounting discretion allowed under the IFRS, and its potential opportunistic use by managers. We examine the role of corporate governance in the accounting discretion inherent in goodwill impairment decisions under the IFRS. More specifically, we investigate whether, in Australia, stronger governance strengthens associations between economic factors and goodwill impairment loss but weakens associations between contracting incentives and goodwill impairment loss. Using data from 2007 to 2012, we find evidence consistent with the notion that stronger governance enhances the associations between economic factors and goodwill impairment loss. However, we find that strong governance cannot completely eliminate the opportunistic use of discretion in an impairment decision, especially when pre-impairment income is negative, and when the impairment occurs in the first year of a CEO's tenure. Our results are robust with regards to alternative measures of the dependent variable, firm performance variables, and the governance variable, even after controlling for potential self-selection biases.JEL Classification: G34, M41

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“…In particular, they study the effects of potential IFRS adoption by the US on reporting quality, costs, and the capital market. Pope and McLeay (2011) review the empirical IFRS studies emerging from the INTACCT research program and discuss implementation of IFRS in the EU. Bruggemann, Hitz, and Sellhorn (2013) provide an overview of the various IFRS studies without considering the details of individual studies.…”

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confidence: 99%