Abstract
This study investigates (i) the changes in cost of equity capital in the pre- and the post-IFRS adoption periods; (ii) the association between conditional conservatism and cost of equity capital; (iii) how the mandatory adoption of IFRS influences the association between conditional conservatism and cost of equity capital; and (iv) how the mandatory adoption of IFRS and concurrent enforcement affect the association between conditional conservatism and cost of equity capital. We find that cost of equity capital is lower after the mandatory IFRS adoption, especially for the countries adopt IFRS with strong enforcement. We find significant negative association between conditional conservatism and cost of equity capital in the pre- and the post-adoption periods. This association is more pronounced for the countries which strong enforcement of IFRS adoption, while the mandatory IFRS adoption alone has no impact on this association.
| Original language | English |
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| Number of pages | 38 |
| Publication status | Published - Aug 2018 |
| Event | American Accounting Association's 102nd Annual Meeting at Washington, D.C., US. - Gaylord National Resort & Convention Centre, National Harbor, US., Washington, D.C., United States Duration: 4 Aug 2018 → 8 Aug 2018 |
Conference
| Conference | American Accounting Association's 102nd Annual Meeting at Washington, D.C., US. |
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| Country/Territory | United States |
| City | Washington, D.C. |
| Period | 4/08/18 → 8/08/18 |
Bibliographical note
1. This paper was accepted by the referee of European Accounting Association's 41st Annual Congress, at Bacconi University, Milan, Italy, from 29th May to 1st June 20182. This paper was accepted by the referee of British Accounting and Finance Association Annual Conference, at Central Hall Westminster, Robert Perk
on 10th April 2018
Keywords
- IFRS
- IFRS, conditional conservatism
- cost of equity