IDEAS home Printed from https://ideas.repec.org/a/wsi/tijaxx/v55y2020i03ns1094406020500134.html
   My bibliography  Save this article

Voluntary IFRS Adoption by Unlisted European Firms: Impact on Earnings Quality and Cost of Debt

Author

Listed:
  • Mara Cameran

    (Bocconi University, Department of Accounting, Via Roentgen 1, 20136 Milan, Italy)

  • Domenico Campa

    (International University of Monaco, INSEEC U Research Center, 16 Rue Clerissi, 98000 Monaco, Principality of Monaco)

Abstract

This paper investigates the impact of the voluntary adoption of International Financial Reporting Standards (IFRS) by unlisted firms on both their financial reporting quality and cost of debt. Using a large international sample of unlisted EU companies for which the choice of IFRS is voluntary, we find that IFRS adoption has a positive impact on financial reporting quality and results in a decrease in the cost of debt. In addition, unlisted firms adopting IFRS are more likely to be acquired or go public in the years subsequent to the adoption, relative to other unlisted firms. We document a tangible benefit of voluntary IFRS adoption by unlisted firms.

Suggested Citation

  • Mara Cameran & Domenico Campa, 2020. "Voluntary IFRS Adoption by Unlisted European Firms: Impact on Earnings Quality and Cost of Debt," The International Journal of Accounting (TIJA), World Scientific Publishing Co. Pte. Ltd., vol. 55(03), pages 1-36, September.
    • Handle: RePEc:wsi:tijaxx:v:55:y:2020:i:03:n:s1094406020500134
    DOI: 10.1142/S1094406020500134
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1094406020500134
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1094406020500134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:tijaxx:v:55:y:2020:i:03:n:s1094406020500134. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/tija .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.