Market Reaction to Mandatory IFRS Adoption: Evidence from Poland
This article analyses the effects of mandatory International Financial Reporting Standards adoption in Poland. Our aim is to determine how market participants reacted to the new accounting standards on the year of the adoption and whether their behavior changed afterwards. We examine abnormal returns around annual consolidated report publication, and the value relevance of earnings. Event studies show that annual report publication does not produce unexpected information either before, on, or after the adoption. Value relevance estimations produce consistent earnings coefficients for the unexpected earnings model for adopters and non-adopters. Interestingly, IFRS adopters are valued higher before the adoption, but not afterwards. The paper contributes a comprehensive methodology for market reaction studies and offers a range of possible extensions.
Volume (Year): 10 (2011)
Issue (Month): 2 (June)
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:ami:journl:v:10:y:2011:i:2:p:228-248. 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: (Cristina Geambasu)The email address of this maintainer does not seem to be valid anymore. Please ask Cristina Geambasu to update the entry or send us the correct email address
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.