The transition to IFRS and the value relevance of financial statements in Greece

Details

Serval ID
serval:BIB_B0DCF3CCBAE2
Type
Article: article from journal or magazin.
Collection
Publications
Title
The transition to IFRS and the value relevance of financial statements in Greece
Journal
The British Accounting Review
Author(s)
Tsalavoutas I., André P., Evans L.
ISSN
0890-8389
Publication state
Published
Issued date
12/2012
Peer-reviewed
Oui
Volume
44
Number
4
Pages
262-277
Language
english
Abstract
We examine the combined value relevance of book value of equity and net income before and after the mandatory transition to IFRS in Greece. Contrary to our expectations, we find no significant change in the explanatory power of value relevance regressions between the two periods. The coefficients on book value of equity and net income are positive and significant in both the pre-IFRS and post-IFRS periods. However, the coefficient on book value of equity is significantly greater under IFRS, whereas we find some evidence of a decrease in the coefficient on net income. Finally, we find that market participants viewed the extra information provided by reconciliations between Greek GAAP and IFRS for 2004 figures as incrementally value relevant.
Keywords
Creative accounting, Greece, IFRS implementation, Value relevance
Create date
29/04/2016 14:47
Last modification date
20/08/2019 15:19
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