Schleicher, Thomas, Tahoun, Ahmed and Walker, Martin (2010) IFRS adoption in Europe and investment-cash flow sensitivity: outsider versus insider economies. International Journal of Accounting, 45 (2). pp. 143-168. ISSN 0020-7063
Full text not available from this repository.Abstract
We examine the economic consequences of the mandatory adoption of IFRS in EU countries by showing which types of economies have the largest reduction in investment-cash flow sensitivity post-IFRS. We also examine whether the reduction in investment-cash flow sensitivity depends on firm size as well as economy type. We find that the investment-cash flow sensitivity of insider economies is higher than that of outsider economies pre-IFRS and that IFRS reduces the investment-cash flow sensitivity of insider economies more than that of outsider economies. Also, we find that small firms in insider economies have the highest sensitivity of investment to lagged cash flow pre-IFRS, and that they are no longer sensitive to lagged cash flow post-IFRS. Overall, our results suggest that IFRS adoption might have improved the functioning of capital markets in relation to small firms in insider economies.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.elsevier.com/wps/find/journaldescriptio... |
| Additional Information: | © 2010 University of Illinois |
| Divisions: | Accounting |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance |
| JEL classification: | G - Financial Economics > G1 - General Financial Markets G - Financial Economics > G3 - Corporate Finance and Governance K - Law and Economics > K2 - Regulation and Business Law > K22 - Corporation and Securities Law M - Business Administration and Business Economics; Marketing; Accounting > M4 - Accounting and Auditing > M41 - Accounting |
| Date Deposited: | 20 Jun 2011 08:34 |
| Last Modified: | 13 Apr 2024 00:15 |
| URI: | http://eprints.lse.ac.uk/id/eprint/36837 |
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