publication . Other literature type . Article . Preprint . 2015

What drives the comparability effect of mandatory IFRS adoption?

Stefano Cascino; Joachim Gassen;
Open Access
  • Published: 01 Mar 2015
  • Publisher: Springer Science and Business Media LLC
  • Country: United Kingdom
Abstract
We investigate the effects of mandatory IFRS adoption on the comparability of financial accounting information. Using two comparability proxies based on De Franco et al. [2011] and a comparability proxy based on the degree of information transfer, our results suggest that the overall comparability effect of mandatory IFRS adoption is marginal. We hypothesize that firm-level heterogeneity in IFRS compliance explains the limited comparability effect. To test this conjecture, we first hand-collect data on IFRS compliance for a sample of German and Italian firms and find that firm-, region-, and country-level incentives systematically shape IFRS compliance. We then ...
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Subjects
free text keywords: HD28 Management. Industrial Management, Accounting, General Business, Management and Accounting, international accounting; IFRS; comparability; compliance; reporting incentives, Enforcement, Comparability, Accounting standard, Corporate finance, Public finance, Financial accounting, business.industry, business, Proxy (climate), Incentive, jel:G14, jel:M41
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