Capital Market Effects of the IFRS Adoption for Separate Financial Statements: Evidence from the Italian Stock Market
AbstractUsing a sample of Italian firms, I investigate whet her separate financial statements are useful to capital market investors and IFRS are more value-relevant than domestic GAAP. I find significant differences in value-relevance between Italian GAAP and IFRS, with IFRS being more informative than Italian GAAP. However, while results are robust for book value, they provide mixed evidence on net income. I also investigate the value-relevance of separate financial statements under IFRS relative to consolidate financial statements and I find that the former are more value-relevant than the latter. Overall, this study provides evidence supporting the choice of adopting IFRS for separate financial statements.
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Bibliographic InfoPaper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 201309.
Length: 30 pages
Date of creation: Mar 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-03-30 (Accounting & Auditing)
- NEP-ALL-2013-03-30 (All new papers)
- NEP-EUR-2013-03-30 (Microeconomic European Issues)
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