The Differential Impact of IFRS Adoption on Aspects of Seasoned Equity Offerings in the UK and France

IF 4.6 Q1 BUSINESS, FINANCE Accounting in Europe Pub Date : 2018-10-16 DOI:10.1080/17449480.2018.1531141
Mostafa Harakeh, Edward Lee, M. Walker
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引用次数: 12

Abstract

Abstract We examine the potential for IFRS to influence the market for SEOs in the UK and France. The divergence between the UK domestic accounting standards and IFRS is minor (low-divergence firms) whereas domestic accounting standards in France differ materially from IFRS (high-divergence firms); however, both countries have similar legal enforcement and institutional settings that might confound the effect of IFRS adoption. We argue that IFRS adoption serves to mitigate information asymmetry and improve accounting quality. Accordingly, we find that, following IFRS adoption, earnings management activities decrease among high-divergence firms prior to issuing SEOs. As a result of the lower levels of earnings management and information asymmetry, we predict and find that the market reaction to issuing SEOs improves significantly for high-divergence firms following IFRS. Given that equity financing becomes less costly, we find that the propensity to issue new SEOs increases among high-divergence firms after IFRS adoption. We find no similar changes among low-divergence firms. The results persist after running a matched-sample analysis and controlling for potential self-selection bias.
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《国际财务报告准则》的采用对英国和法国经验丰富的股票发行的不同影响
摘要:我们研究了IFRS在英国和法国影响seo市场的潜力。英国国内会计准则与国际财务报告准则之间的差异较小(低差异公司),而法国国内会计准则与国际财务报告准则之间存在重大差异(高差异公司);然而,这两个国家具有相似的法律执行和制度设置,这可能会混淆采用国际财务报告准则的效果。我们认为,采用国际财务报告准则有助于缓解信息不对称,提高会计质量。因此,我们发现,采用国际财务报告准则后,在发行seo之前,高差异公司的盈余管理活动减少。由于较低的盈余管理水平和信息不对称,我们预测并发现,对于遵循IFRS的高差异公司,市场对发布seo的反应显着改善。鉴于股权融资成本降低,我们发现在采用国际财务报告准则后,高差异公司发行新seo的倾向增加。我们发现在低差异企业中没有类似的变化。在进行匹配样本分析并控制潜在的自我选择偏差后,结果仍然存在。
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来源期刊
Accounting in Europe
Accounting in Europe BUSINESS, FINANCE-
CiteScore
5.00
自引率
7.10%
发文量
14
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