Cookies?
Library Header Image
LSE Research Online LSE Library Services

Mandatory financial reporting and voluntary disclosure: The effect of mandatory IFRS adoption on management forecasts

Li, Xi (2016) Mandatory financial reporting and voluntary disclosure: The effect of mandatory IFRS adoption on management forecasts. Accounting Review, 91 (3). pp. 933-953. ISSN 0001-4826

Full text not available from this repository.
Identification Number: 10.2308/accr-51296

Abstract

This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-differences analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, increased shareholder demand, and increased analyst demand. We find evidence consistent with all three channels.

Item Type: Article
Additional Information: © 2016 The Author
Divisions: Accounting
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Sets: Departments > Accounting
Date Deposited: 05 Dec 2017 14:01
Last Modified: 20 Mar 2019 03:04
URI: http://eprints.lse.ac.uk/id/eprint/85964

Actions (login required)

View Item View Item