The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information

Abstract

This study investigates the effect of mandatory adoption of International Financial Reporting Standards (IFRS) on the value relevance of accounting information in Argentina, which originated via the regulation that required all public non-financial companies to change the accounting standards, for fiscal periods starting in January 2012. As with most value-relevance studies, this research employs the Ohlson Model to examine the empirical association between equity prices and two main accounting variables: Net Earnings (representing the Income Statement) and the Book Value of Equity (representing the Balance Sheet). Panel data for 40 companies over a period of 23 years, from quarterly financial reports published by the Buenos Aires Stock Exchange (BCBA), are examined. The reported results suggest that mandatory adoption of IFRS in Argentina does not improve the value relevance of any of the tested variables. On the contrary, after the switch in accounting standards, the accounting numbers present a weaker association with the stock price.

La relevancia valorativa de la información financiera en Colombia. Un estudio empírico

“…Los resultados no son homogéneos; mientras en algunos países se observan avances en otros no tanto. Esto aplica para varios estudios sobre América Latina, especialmente para las economías más grandes y dinámicas, como Brasil, México, Argentina, Chile y Perú (Cardona et al, 2019;Dos Santos & Cavalcante, 2014;Da Silva et al, 2018;Liu et al, 2012;Roca, 2021;Rodríguez et al, 2017;Tanaka, 2015;Vásquez, 2013).…”

“…En el caso de Argentina se ha sugerido que adaptar unos estándares internacionales basados en principios (en los que se privilegia la subjetividad), en un país en el que la profesión y el mercado estaban acostumbrados a las reglas detalladas, sumado a una baja protección de los inversionistas y una excesiva exibilidad regulatoria, es decir, el establecimiento de varias excepciones de alcance, ha podido derivar en un escenario de insuciente aplicación eciente y ecaz de los IFRS (Roca, 2021).…”

Challenges and Difficulties for Micro-Businesses in Adapting Ifrs for Smes Requirements: Kosovo Evidence

“…The financial crisis of 2007-2009 led a large number of studies to estimate the consequence of financial data value conferring to new standards with the ongoing adoption of the IFRSs towards the converging financial reporting in different states. The vast majority of research refers to forced adaptation (see Roca 2021;Sinem et al 2021;Cormier et al 2009), but there is also research on voluntary adaptation (Kouki 2018). Given the evolution, the research aims to examine the adverse consequences which have a specific focus on micro-businesses when adapting the standards under the present context.…”

Company liquidity as a reflection of receivables and payables management

“…The resulting values of these indicators predict the current solvency of the company. The following information is provided by the authors: Zalai, 2016; Miah, 2021;Jakubec & Kardoš, 2016;Roca, 2021;Oreský & Rehák 2019;Vlachynský et al, 2009;Wijekoon et al, 2021;Fabus, 2015;Lombardi, et al, 2020;Kajanová, 2014;Mládek, 2005;Miah et al, 2021, Štangová & Hajduchová, 2010Savina et al, 2021;Kajanová et al, 2014. Management of receivables and payables for the company means the financial health of the company, which will ensure the long-term operation of the company. The authors wrote about this idea in their publications: Daniel, 2013;Frintrup, et al, 2020;Gernon & Meek, 2001;Horváthová et al, 2016;Hillebrandt, M. & Leino-Sandberg, 2021;Kainth & Wahlstrom, 2021;Kotulič et al, 2018;Majduchová & Neumannová, 2008;Tumpach, 2006;Majduchova et al, 2020;Pavic, 2020;Riahi-Belkaoui, 2000;Šlosárová & Blahušiaková, 2020;Suhányiová & Fabian, 2010;Suhányiová, et al, 2016;Suhányiová, 2009;Suhányiová, 2011;Silva et al 2021aSilva et al , 2021b.…”