IFRS Adoption and Stock Prices of Japanese Firms in Governance System Transition

Shun Sato, Fumiko Takeda

研究成果: Article査読

7 被引用数 (Scopus)

抄録

This study examines firms’ decision to voluntarily adopt IFRS in a setting where there are changes to the governance system in a traditionally code law country, as well as how the market responds to such decisions. We find the probability of voluntary IFRS adoption to be higher among firms that have a high proportion of foreign shareholders, undertake quality audits, have low levels of leverage, feature a nominating committee, and are included in the new market index. In addition, the stock prices of IFRS adopters tend to increase around the announcement date of IFRS adoption, compared to those of non-adopters. Finally, market reactions are smaller for firms that feature a nominating committee, and are included in the new market index—perhaps because IFRS adoption by these firms is less surprising to market participants, and because IFRS adoption is not expected to add large incremental value to these firms.

本文言語English
ページ(範囲)319-337
ページ数19
ジャーナルInternational Journal of Accounting
52
4
DOI
出版ステータスPublished - 2017 12月
外部発表はい

ASJC Scopus subject areas

  • 会計
  • 財務

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