Pre-adoption market reaction to IFRS 9: a cross-country event-study

Enrico Onali*, Gianluca Ginesti

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

We are the first to examine the market reaction to 13 announcement dates related to IFRS 9 for over 5400 European listed firms. We find an overall positive reaction to the introduction of IFRS 9. The regulation is particularly beneficial to shareholders of firms in countries with weaker rule of law and a smaller divergence between local GAAP and IAS 39. Bootstrap simulations rule out the possibility that sampling error or data mining are driving our findings. Our main findings are also robust to confounding events and the extent of the media coverage for each event. These results suggest that investors perceive the new regulation as shareholder-wealth enhancing and support the view that stronger comparability across accounting standards of European firms is beneficial to international investors and outweighs the costs of poorer firm-specific information.

Original languageEnglish
Pages (from-to)628-637
Number of pages10
JournalJournal of Accounting and Public Policy
Volume33
Issue number6
Early online date30 Aug 2014
DOIs
Publication statusPublished - Nov 2014

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market reaction
firm
event
shareholder
investor
sampling error
regulation
constitutional state
divergence
coverage
simulation
Market reaction
Event study
International Financial Reporting Standards
costs
Investors

Bibliographical note

© 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Cite this

Onali, Enrico ; Ginesti, Gianluca. / Pre-adoption market reaction to IFRS 9 : a cross-country event-study. In: Journal of Accounting and Public Policy. 2014 ; Vol. 33, No. 6. pp. 628-637.
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Pre-adoption market reaction to IFRS 9 : a cross-country event-study. / Onali, Enrico; Ginesti, Gianluca.

In: Journal of Accounting and Public Policy, Vol. 33, No. 6, 11.2014, p. 628-637.

Research output: Contribution to journalArticle

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