A1 Vertaisarvioitu alkuperäisartikkeli tieteellisessä lehdessä
How Markets Valuate and Response to IFRS Reconciliations Adjustments in Finland
Tekijät: Schadewitz HJ, Vieru MJ
Kustantaja: Social Science Electronic Publishing
Julkaisuvuosi: 2007
Journal: Social Science Research Network
Tietokannassa oleva lehden nimi: SSRN Electronic Journal
Aloitussivu: 1
Lopetussivu: 49
Sivujen määrä: 49
ISSN: 1556-5068
DOI: https://doi.org/10.2139/ssrn.1005601
Verkko-osoite: http://dx.doi.org/10.2139/ssrn.1005601
This study focuses on the value relevance and market responses of mandatory transition to International Financial Reporting Standards (IFRS), using sample of Finnish first-time IFRS adopters. The Finnish data is used since prior research findings suggest large differences between Finnish accounting standards (FAS) and IFRS. Some evidence of value relevance is found in IFRS adjustments on earnings but not with IFRS adjustments in sharholders´ equity. Furthermore, only minor market responses on stock returns and no excess trading after the release of IFRS reconciliation adjustments are evidenced. This suggests that great deal of IFRS reconciliations, if relevant, were anticipated by investors.