The Impact of IFRS Adoption and Corporate Governance Principles on Transparency and Disclosure: The Case of Borsa Istanbul

Aksu, Mine Hatice; Espahbodi, Hassan

doi:10.1080/1540496x.2014.998570

Cited by 24 publications

(30 citation statements)

References 51 publications

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“…The insignificance of the profitability variable and the negative sign of the need for external financing indicate the low level of importance of the capital markets when they are illiquid and inefficient. That, however, places higher burden on the governments to look for appropriate measures to stimulate or impose the implementation of the best practices in this field, which is supported in other papers, as well (Aksu & Espahbodi, 2016;Berglöf & Pajuste, 2005;Beekes, Brown, & Zhang, 2015;Östberg, 2006;Satta, Parola, Profumo, & Penco, 2015). This is the first study that explores the issue of transparency and its determinants in the post-transition economies using a sample covering several Balkan countries and a comprehensive measure of transparency and disclosure.…”

Section: Discussionmentioning

confidence: 75%

“…They find positive relationship between corporate transparency and the liquidity of their shares, the expected performance of the firm and the level of its R&D expenditures and a negative impact of the level of market competition. Aksu and Espahbodi (2016) investigate the behaviour of the companies listed on the Istanbul Stock Exchange to determine if mandatory or voluntary regulation provides better results in terms of disclosure quality. They find out that the mandatory implementation of International Financial Reporting Standards (I.F.R.S.)…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinants of transparency and disclosure – evidence from post-transition economies

Arsov

Bucevska

2017

Economic Research-Ekonomska Istraživanja

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In this paper, we examine the patterns of behaviour of companies from former socialist countries related to the application of good corporate governance practices. We try to assess the level of transparency and to determine if there are any factors that systematically influence corporate behaviour in this regard. Using a sample of 145 companies from Croatia, Macedonia, Slovenia and Serbia, we apply Standard & Poor's (S&P) methodology for assessment of transparency and disclosure levels and find that the companies in these countries generally lag in terms of transparency behind their peers worldwide as measured one decade ago. Additionally, using the same sample, we apply a regression analysis and conclude that the level of transparency is positively related to the size of the company and the need for external financing, but negatively to the concentration of ownership and we also observe important country effects. We do not find a statistically significant relationship between transparency and profitability and relate this finding with the prevailing attitude of the companies towards the stock market. Having in mind the different scores by country and by area of disclosure, we believe that there is still scope for improvement using proper advising and public policy measures.

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Section: Discussionmentioning

confidence: 75%

Section: Literature Reviewmentioning

confidence: 99%

Determinants of transparency and disclosure – evidence from post-transition economies

Arsov

Bucevska

2017

Economic Research-Ekonomska Istraživanja

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“…As future research, we intend to examine the effect of other CG attributes (family versus non-family ownership, cross-equity ownership, float rate, foreign or institutional shareholdings) on the value relevance of accounting numbers. These independent variables are also expected to mitigate the agency problem related to the expropriation of minority 5 We also investigated the effect of Corporate Governance Principles compliance reporting, promulgated on a comply or explain basis in 2004, leading to significant progress in the transparency and disclosure (TD) scores of BIST firms measured using S&P methodology over the 2003-2006 period, particularly with regard to financial information and ownership structure disclosures in the annual reports of listed companies [53]. Using the BIST firms in our sample with TD scores, we created two subsamples of high and low TD score firms and compared value relevance of NI and BE in these two subsamples.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Value Relevance of Accounting Data in an Emerging Market: Did Accounting Reforms Make a Difference?

Aksu¹,

Çetin²,

Mugan³

2017

Accounting and Corporate Reporting - Today and Tomorrow

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This study investigates the association of accounting earnings (NI) and book value of equity (BV) with stock prices in Istanbul Stock Exchange (ISE), currently Borsa Istanbul (BIST), during the 1992-2006 period. We also explore the effect of accounting reforms on value relevance that is measured as the strength of the association between a firm'sNIand BV and its market value. We specifically investigate the impact of the Turkish Uniform Chart of Accounts (1994), mandatory inflation accounting, consolidations and voluntary (2003)(2004), and the mandatory (2005) adoption of International Financial Reporting Standards (IFRS). We hypothesize that these reforms have reduced information asymmetry and thus are expected to enhance the value relevance of accounting information. We find strong evidence that the Ohlson model is a valid model, and BV is more value relevant than NI in BIST. We also find that inflation accounting and consolidations have enhanced the value relevance of BV, while IFRS has increased the value relevance of NI, but reduced that of BV. We contribute to the debate by exploiting the unique sequence of reforms, to come up with comparative value relevance testing designs and interesting results for all major reforms, which we believe will be instructive for researchers and for all emerging and developed economies undergoing similar reforms and best practices.

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“…Based on legitimacy theory, it contends that environmental factors could have influences on accounting system as well as disclosure practices across country. This includes not only internal but also external variables such as a demand for information of stakeholders, an influence of globalization, an advancement of technological innovation, an increasing of international trade and investments agreement, a global harmonization of accounting standards and so on (Choi, 1973 ;Thomas, 1986 ;Garcia, 2007;Chuanrommanee & Swierczek, 2007;Bauwhede & Willekens, 2008;Bokpin, 2013;Kittiakrastein & Srijunpetch, 2013;Sundgren et al, 2013;and Aksu & Espahbodi, 2016). In accordance with aforementioned, there are a number of empirical evidences convincing that the adoption of stronger standards could help to develop and stimulate better businesses practices, reflecting on the greater transparency.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Comparative Analysis on Corporate Disclosure Practices of Listed Companies in ASEAN-5 after the Adoption of the Renewal Regional Disclosure Standards

Chantachaimongkol

Chen

2019

jabm

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This study aims to assess and compare the extent of corporate disclosure of the countries that have already implemented the renewal ASEAN disclosure standards with the countries that have not implemented yet. The empirical result indicates that overall picture of corporate disclosure in the ASEAN is in a good progression, with an increasing trend. Then, an independent t-test analysis addresses that the renewal ASEAN disclosure standards could have an effect on the level of corporate disclosure, especially in terms of non-financial and strategic information. But, it has no impacts on financial information. Therefore, it can be concluded that the regional disclosure standards might be one of the supportive factors for enforcing businesses to disclose more corporate information to the public. With this finding, it could alert regional regulators by providing the weaknesses of the current activities related to economic integration and guiding the direction for further development.

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The Impact of IFRS Adoption and Corporate Governance Principles on Transparency and Disclosure: The Case of Borsa Istanbul

Cited by 24 publications

References 51 publications

Determinants of transparency and disclosure – evidence from post-transition economies

Determinants of transparency and disclosure – evidence from post-transition economies

Value Relevance of Accounting Data in an Emerging Market: Did Accounting Reforms Make a Difference?

Comparative Analysis on Corporate Disclosure Practices of Listed Companies in ASEAN-5 after the Adoption of the Renewal Regional Disclosure Standards

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