Advanced Search
MyIDEAS: Login

The impact of IFRS implementation on Greek listed companies: An industrial sector and stock market index analysis

Contents:

Author Info

  • George Iatridis
  • Konstantia Dalla
Registered author(s):

    Abstract

    Purpose – While the Greek GAAP is stakeholder-oriented and commonly viewed as a historical cost accounting model, IFRS is shareholder-oriented and generally perceived as a fair-value accounting model. The study seeks to investigate the effects of adopting IFRSs on the financial statements of Greek listed companies. It focuses on major Greek industrial sectors and stock market indices and investigates the effects of IFRS adoption on company financial position and performance. Design/methodology/approach – A binary logistic regression has been applied in order to capture the differences between the pre-official adoption and official adoption periods. The model focuses on 2004 and 2005. The dependent variable is a dummy variable and takes the following values: 1 for 2005 and 0 for 2004. Findings – The study shows that IFRS implementation has influenced positively the profitability of most industrial sectors as well as those firms that belong to FTSE 40 and SMALLCAP 80. IFRS adoption appears to negatively influence liquidity for a number of industrial sectors and stock market constituents. An increase in leverage is obtained from the examination of the sample stock market indices and industrial sectors. Similar findings are evidenced for firms of large size and high financing needs. Research limitations/implications – The study is limited in the following respects. The results reflect short-term timing differences, which may reverse in later accounting periods. Also, companies should have anticipated IFRS adoption and might have adjusted their accounting policies accordingly, or even managed their reported numbers, in the period under investigation, since the EU Regulation passed in 2002. Originality/value – The findings of the study are useful for investors, shareholders, financial analysts and other market participants as they provide information about the impact of IFRS implementation per major sector and market index. The effects would be expected to vary as each sector and market index carries different financial attributes. Users of accounting information could make use of the findings of the study for the evaluation of the financial performance and prospects of a sector/index and for other investment decision-making purposes. The study also contributes to the literature as it focuses on a code law country that is stakeholder-oriented.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.emeraldinsight.com/journals.htm?issn=1743-9132&volume=7&issue=3&articleid=1937655&show=abstract
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal International Journal of Managerial Finance.

    Volume (Year): 7 (2011)
    Issue (Month): 3 (June)
    Pages: 284-303

    as in new window
    Handle: RePEc:eme:ijmfpp:v:7:y:2011:i:3:p:284-303

    Contact details of provider:
    Web page: http://www.emeraldinsight.com

    Order Information:
    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Email:
    Web: http://www.emeraldinsight.com/ijmf.htm

    Related research

    Keywords: Accounting standards; Financing needs; Firm size; Greece; Industrial sectors; International finance; Stock market indices;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, 06.
    2. Jordi Perramon & Oriol Amat, 2006. "IFRS introduction and its effect on listed companies in Spain," Economics Working Papers 975, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Ding, Yuan & Hervé, Stolowy & Hope, Ole-Kristian & Jeanjean, Thomas, 2005. "Differences between domestic accounting standards and IAS: measurement, determinants and implications," Les Cahiers de Recherche 826, HEC Paris.
    4. Charalambos Spathis & Eleftheria Georgakopoulou, 2007. "The adoption of IFRS in South Eastern Europe: the case of Greece," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 2(1/2), pages 50-63.
    5. Annelies Renders & Ann Gaeremynck, 2007. "The Impact of Legal and Voluntary Investor Protection on the Early Adoption of International Financial Reporting Standards (IFRS)," De Economist, Springer, vol. 155(1), pages 49-72, March.
    6. Patricia Teixeira Lopes & Rui Couto Viana, 2008. "The transition to IFRS: disclosures by Portuguese listed companies," FEP Working Papers 285, Universidade do Porto, Faculdade de Economia do Porto.
    7. Holger Daske & Luzi Hail & Christian Leuz & Rodrigo Verdi, 2008. "Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences," Journal of Accounting Research, Wiley Blackwell, vol. 46(5), pages 1085-1142, December.
    8. Jeffrey A. Wurgler & Malcolm P. Baker, 2001. "Market Timing and Capital Structure," Yale School of Management Working Papers ysm181, Yale School of Management.
    9. Brenda van Tendeloo & Ann Vanstraelen, 2005. "Earnings management under German GAAP versus IFRS," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 155-180.
    10. Ball, Ray & Kothari, S. P. & Robin, Ashok, 2000. "The effect of international institutional factors on properties of accounting earnings," Journal of Accounting and Economics, Elsevier, vol. 29(1), pages 1-51, February.
    11. Ch. Spathis & M. Doumpos & C. Zopounidis, 2002. "Detecting falsified financial statements: a comparative study using multicriteria analysis and multivariate statistical techniques," European Accounting Review, Taylor & Francis Journals, vol. 11(3), pages 509-535.
    12. Ball, Ray & Robin, Ashok & Wu, Joanna Shuang, 2003. "Incentives versus standards: properties of accounting income in four East Asian countries," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 235-270, December.
    13. Street, Donna L. & Nichols, Nancy B. & Gray, Sidney J., 2000. "Assessing the Acceptability of International Accounting Standards in the US: An Empirical Study of the Materiality of US GAAP Reconciliations by Non-US Companies Complying with IASC Standards," The International Journal of Accounting, Elsevier, vol. 35(1), pages 27-63, 03.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Papadamou, Stephanos & Tzivinikos, Trifon, 2013. "The risk relevance of International Financial Reporting Standards: Evidence from Greek banks," International Review of Financial Analysis, Elsevier, vol. 27(C), pages 43-54.
    2. George Iatridis, Panayotis Alexakis, 2012. "Evidence of voluntary accounting disclosures in the Athens Stock Market Purpose – The purpose of this paper is to explore the motives for providing voluntary accounting disclosures and investigate t," Review of Accounting and Finance, Emerald Group Publishing, vol. 1(1), pages 73-92, February.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eme:ijmfpp:v:7:y:2011:i:3:p:284-303. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.