IFRS adoption and firm value: African evidence
IFRS adoption and firm value: African evidence
We examine the impact of the adoption of International Financial Reporting Standards (IFRS) on firm value using a sample of African listed firms selected over the 2000–2015 period. Our results show that the adoption of IFRS positively impacts firm value. We further find that the impact of IFRS adoption on firm value is more pronounced in environments where there is a greater commitment to the rule of law. Moreover, the increase in firm value is more pronounced for firms with a higher degree of financial constraints. Finally, additional results suggest that the benefits of fully implementing IFRS are higher than those arising from partial/modified adoption. Our results are robust to controlling for other factors that affect firm value and to alternative sampling procedures.
238-261
Agyei-Boapeah, Henry
37005f29-d453-458e-b6b5-cd92e55587a4
Machokoto, Michael
308ab149-3ed9-41cd-ae8e-6b223f90b4a6
Amankwa-Amoah, Joseph
6d11e8ee-cb5f-4e2a-bcff-fa414f2ce564
Tunyi, Abongeh
865fa180-1a99-4ac1-b889-0148882869a2
Fosu, Samuel
21c4f19e-d261-4d58-9fc8-74696aa0113b
Agyei-Boapeah, Henry
37005f29-d453-458e-b6b5-cd92e55587a4
Machokoto, Michael
308ab149-3ed9-41cd-ae8e-6b223f90b4a6
Amankwa-Amoah, Joseph
6d11e8ee-cb5f-4e2a-bcff-fa414f2ce564
Tunyi, Abongeh
865fa180-1a99-4ac1-b889-0148882869a2
Fosu, Samuel
21c4f19e-d261-4d58-9fc8-74696aa0113b
Agyei-Boapeah, Henry, Machokoto, Michael, Amankwa-Amoah, Joseph, Tunyi, Abongeh and Fosu, Samuel
(2020)
IFRS adoption and firm value: African evidence.
Accounting Forum, 44 (3), .
(doi:10.1080/01559982.2020.1766755).
Abstract
We examine the impact of the adoption of International Financial Reporting Standards (IFRS) on firm value using a sample of African listed firms selected over the 2000–2015 period. Our results show that the adoption of IFRS positively impacts firm value. We further find that the impact of IFRS adoption on firm value is more pronounced in environments where there is a greater commitment to the rule of law. Moreover, the increase in firm value is more pronounced for firms with a higher degree of financial constraints. Finally, additional results suggest that the benefits of fully implementing IFRS are higher than those arising from partial/modified adoption. Our results are robust to controlling for other factors that affect firm value and to alternative sampling procedures.
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Accepted/In Press date: 6 May 2020
e-pub ahead of print date: 17 June 2020
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Local EPrints ID: 440870
URI: http://eprints.soton.ac.uk/id/eprint/440870
ISSN: 0155-9982
PURE UUID: b142d953-211c-4426-b75c-1f8607e8f017
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Date deposited: 21 May 2020 16:30
Last modified: 17 Mar 2024 05:33
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Author:
Michael Machokoto
Author:
Joseph Amankwa-Amoah
Author:
Abongeh Tunyi
Author:
Samuel Fosu
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