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題名 Mandatory adoption of IFRS and timely loss recognition across Europe: The effect of corporate finance incentives
作者 Chan, Ann Ling Ching ; Hsu, A.W.-H.; Lee, E.
詹凌菁
貢獻者 會計系
關鍵詞 IFRS; Costs of debt capital; Timely loss recognition; Corporate finance
日期 2015-03
上傳時間 25-Mar-2015 10:14:32 (UTC+8)
摘要 We examine whether firms have increased their timely loss recognition with the mandatory adoption of International Financial Reporting Standards (IFRS) across Europe since 2005. We estimate firm-specific asymmetric timeliness using the Khan and Watts (2009) C-score, which accounts for size, market-to-book, and leverage. We use firms that voluntarily adopted IFRS before the mandatory adoption date as a control sample to address the effect of unidentified confounding events. We find increased timely loss recognition relative to this control sample only among mandatory IFRS adopters with a higher cost of debt and in countries less dependent on private debt or bank financing. Our results are robust to controls for firm characteristics such as interest coverage, return on assets, earnings volatility, loss, accrual quality, beta, and growth, as well as both industry and country effects. We confirm that corporate finance incentives play a decisive role in determining firms` timeliness of loss recognition after mandatory IFRS adoption.
關聯 International Review of Financial Analysis,38,70-82
資料類型 article
DOI http://dx.doi.org/10.1016/j.irfa.2015.02.002
dc.contributor 會計系-
dc.creator (作者) Chan, Ann Ling Ching ; Hsu, A.W.-H.; Lee, E.-
dc.creator (作者) 詹凌菁-
dc.date (日期) 2015-03-
dc.date.accessioned 25-Mar-2015 10:14:32 (UTC+8)-
dc.date.available 25-Mar-2015 10:14:32 (UTC+8)-
dc.date.issued (上傳時間) 25-Mar-2015 10:14:32 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/74024-
dc.description.abstract (摘要) We examine whether firms have increased their timely loss recognition with the mandatory adoption of International Financial Reporting Standards (IFRS) across Europe since 2005. We estimate firm-specific asymmetric timeliness using the Khan and Watts (2009) C-score, which accounts for size, market-to-book, and leverage. We use firms that voluntarily adopted IFRS before the mandatory adoption date as a control sample to address the effect of unidentified confounding events. We find increased timely loss recognition relative to this control sample only among mandatory IFRS adopters with a higher cost of debt and in countries less dependent on private debt or bank financing. Our results are robust to controls for firm characteristics such as interest coverage, return on assets, earnings volatility, loss, accrual quality, beta, and growth, as well as both industry and country effects. We confirm that corporate finance incentives play a decisive role in determining firms` timeliness of loss recognition after mandatory IFRS adoption.-
dc.format.extent 398551 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) International Review of Financial Analysis,38,70-82-
dc.subject (關鍵詞) IFRS; Costs of debt capital; Timely loss recognition; Corporate finance-
dc.title (題名) Mandatory adoption of IFRS and timely loss recognition across Europe: The effect of corporate finance incentives-
dc.type (資料類型) articleen
dc.identifier.doi (DOI) 10.1016/j.irfa.2015.02.002en_US
dc.doi.uri (DOI) http://dx.doi.org/10.1016/j.irfa.2015.02.002en_US