Economic consequences of the first-time IFRS introduction in Europe

Petya PlatikanOVa, Jordi Perramon

Producció científica: Article en revista indexadaArticleAvaluat per experts

20 Cites (Scopus)


Advocates of mandatory IFRS adoption claim that IFRS increases financial statement comparability and enhances the quality of financial disclosure, which in turn leads to more liquid markets. Using first-time disclosure (IFRS restatements), this study tests empirically this assertion by examining whether IFRS adoption by representative European countries results in more liquid markets. We propose that IFRS introduction can directly affect market liquidity by improving comparability. Our findings suggest that, at the industry level, larger restatements in net income increase uncertainty among investors, and by extension stock illiquidity. For industries with fewer restating peers, lack of information comparability additionally suppresses investment activities with larger liquidity costs.

Idioma originalAnglès
Pàgines (de-a)497-519
Nombre de pàgines23
RevistaRevista Espanola de Financiacion y Contabilidad
Estat de la publicacióPublicada - 2012
Publicat externament


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