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Timely Loss Recognition and the Value Relevance of the Romanian Listed Companies Considering the IFRS Approach

Author

Listed:
  • Florin Dobre
  • Laura Brad
  • Radu Ciobanu

    (Bucharest University of Economic Studies, Romania)

Abstract

The Romanian listed entities had to report their individual financial statements under International Financial Reporting Standards (IFRS) from 2012. As at international level the adoption of the new regulation created mixed effects, we investigate how the timely loss recognition and the value relevance changed in Romania after their implementation. The present research looks both at timely loss recognition and at value relevance for Romanian entities that are listed on the Bucharest Stock Exchange. The research is conducted on a four year period of time. The research is based on logit and panel data analysis. The results provide evidence that there seems to be more timely loss recognition and more value relevance for Romanian listed entities after the adoption of the IFRS in the individual financial statements. As a consequence, there is more accurate accounting information on the Romanian market which might trigger higher confidence both for the stakeholders of the company and for the foreign investors.

Suggested Citation

  • Florin Dobre & Laura Brad & Radu Ciobanu, 2015. "Timely Loss Recognition and the Value Relevance of the Romanian Listed Companies Considering the IFRS Approach," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 14(4), pages 732-747, December.
    • Handle: RePEc:ami:journl:v:14:y:2015:i:4:p:732-747
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    References listed on IDEAS

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    7. Basu, Sudipta, 1997. "The conservatism principle and the asymmetric timeliness of earnings," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 3-37, December.
    8. Mark Lang & Jana Smith Raedy & Michelle Higgins Yetman, 2003. "How Representative Are Firms That Are Cross‐Listed in the United States? An Analysis of Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 41(2), pages 363-386, May.
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    Cited by:

    1. Muhammad Mohsin & Mohammad Nurunnabi & Jijian Zhang & Huaping Sun & Nadeem Iqbal & Robina Iram & Qaiser Abbas, 2021. "The evaluation of efficiency and value addition of IFRS endorsement towards earnings timeliness disclosure," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1793-1807, April.

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    More about this item

    Keywords

    timely loss recognition; value relevance; Romania; IFRS; listed entities;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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