Mandatory adoption of IFRS in Latin America: a boon or a bias
Research output: Contribution to journal › Article › peer-review
Exploiting the unique feature that Latin American countries have not undergone a significant change to the enforcement of accounting standards and investor protection mechanisms, we investigate whether mandatory adoption of IFRS and firm-level reporting incentives improve analysts’ information environment in Latin American countries (Argentina, Brazil, Chile, Mexico and Peru), and whether the precision of public, private and consensus information improve after IFRS adoption. Test results show that mandatory adoption of IFRS and firm-level reporting incentives improve analysts’ information environment. Overall, we confirm the positive effects of IFRS adoption, because the precision of public and consensus information is enhanced.
|Number of pages||23|
|Journal||Journal of International Financial Markets, Institutions and Money|
|Early online date||14 Jan 2019|
|Publication status||Published - May 2019|
- IFRS, analysts' information environment, forecast accuracy, target price forecast dispersion, investor protection mechanisms