The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information
This study investigates the effect of mandatory adoption of International Financial Reporting Standards (IFRS) on the value relevance of accounting information in Argentina, which originated via the regulation that required all public non-financial companies to change the accounting standards, for f...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2021-01-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/15140326.2021.1900695 |
| _version_ | 1818323619467493376 |
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| author | Florencia Roca |
| author_facet | Florencia Roca |
| author_sort | Florencia Roca |
| collection | DOAJ |
| description | This study investigates the effect of mandatory adoption of International Financial Reporting Standards (IFRS) on the value relevance of accounting information in Argentina, which originated via the regulation that required all public non-financial companies to change the accounting standards, for fiscal periods starting in January 2012. As with most value-relevance studies, this research employs the Ohlson Model to examine the empirical association between equity prices and two main accounting variables: Net Earnings (representing the Income Statement) and the Book Value of Equity (representing the Balance Sheet). Panel data for 40 companies over a period of 23 years, from quarterly financial reports published by the Buenos Aires Stock Exchange (BCBA), are examined. The reported results suggest that mandatory adoption of IFRS in Argentina does not improve the value relevance of any of the tested variables. On the contrary, after the switch in accounting standards, the accounting numbers present a weaker association with the stock price. |
| first_indexed | 2024-12-13T11:15:34Z |
| format | Article |
| id | doaj.art-cb7161d46dcc41259a7ee3b496b56f71 |
| institution | Directory Open Access Journal |
| issn | 1514-0326 1667-6726 |
| language | English |
| last_indexed | 2024-12-13T11:15:34Z |
| publishDate | 2021-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj.art-cb7161d46dcc41259a7ee3b496b56f712022-12-21T23:48:37ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262021-01-0124115417210.1080/15140326.2021.19006951900695The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting informationFlorencia Roca0Francisco Marroquín UniversityThis study investigates the effect of mandatory adoption of International Financial Reporting Standards (IFRS) on the value relevance of accounting information in Argentina, which originated via the regulation that required all public non-financial companies to change the accounting standards, for fiscal periods starting in January 2012. As with most value-relevance studies, this research employs the Ohlson Model to examine the empirical association between equity prices and two main accounting variables: Net Earnings (representing the Income Statement) and the Book Value of Equity (representing the Balance Sheet). Panel data for 40 companies over a period of 23 years, from quarterly financial reports published by the Buenos Aires Stock Exchange (BCBA), are examined. The reported results suggest that mandatory adoption of IFRS in Argentina does not improve the value relevance of any of the tested variables. On the contrary, after the switch in accounting standards, the accounting numbers present a weaker association with the stock price.http://dx.doi.org/10.1080/15140326.2021.1900695value relevanceargentinaifrsvalue investingohlson model |
| spellingShingle | Florencia Roca The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information Journal of Applied Economics value relevance argentina ifrs value investing ohlson model |
| title | The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information |
| title_full | The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information |
| title_fullStr | The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information |
| title_full_unstemmed | The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information |
| title_short | The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information |
| title_sort | influence of mandatory adoption of ifrs in argentina on value relevance of accounting information |
| topic | value relevance argentina ifrs value investing ohlson model |
| url | http://dx.doi.org/10.1080/15140326.2021.1900695 |
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