Work

Assessing the Value Relevance of Accounting Data After the Introduction of IFRS in Europe

Year: 2010

Type: article

Abstract: Since 2005, European‐listed companies have been required to prepare their consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). We examine whether value relevance increased following the introduction of IFRS, using a sample of 3,721 companies listed on five European stock exchanges: Frankfurt, Madrid, Paris, London, and Milan. We find mixed evidence of an increase in value relevance. However, the influence of earnings on share price increased following the introduction of IFRS in Germany, France, and the United Kingdom, while the influence of book value of equity decreased (except for the United Kingdom).

Source: Journal of International Financial Management and Accounting

DOI: 10.1111/j.1467-646x.2010.01037.x

Authors: Alain Devalle, Enrico Onali, Riccardo Magarini

Institutions: University of Turin, Bangor University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W1490100657

FWCI: 51.46

Cites: 59

Cited by: 242

Related to: 10