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Do IFRS support debt issue for European private companies?

Author

Listed:
  • Jérémie BERTRAND

    (IESEG School of Management)

  • Hélène de BREBISSON

    (IESEG School of Management)

  • Aurore BURIETZ

    (IESEG School of Management & LEM-CNRS 9221)

Abstract

This paper studies the impact of International Financial Reporting Standards (IFRS) adoption on debt issue. It uses empirical analysis to investigate whether European privately held firms can raise debt better by reporting their consolidated financial information according to IFRS rather than local accounting practices. Using fixed-effect regressions on 8,391 firms in 22 countries from 2005 to 2018, the authors show that IFRS adoption leads to better private debt issue for non-listed firms, especially if the firms are opaque or are located in common law countries. The results remain the same regardless of specification and are robust to several alternative tests.

Suggested Citation

  • Jérémie BERTRAND & Hélène de BREBISSON & Aurore BURIETZ, 2020. "Do IFRS support debt issue for European private companies?," Working Papers 2020-ACF-04, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:f202004
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    File URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-04.pdf
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    More about this item

    Keywords

    IFRS; bank debt; non-listed entities;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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