Our consultative bodies. Contact us. Work with us. Why global accounting standards? Adoption and copyright. News and resources. IFRS Translations. Editorial corrections. IFRS Taxonomy. Supporting consistent application. These results show that firms report more smooth net income when they adopt Portuguese standards than when they adopt IASB's standards.
Finally, we use Eviews 5. The results are shown below Tables 6 and 7. The coefficient of SPOS is positive 0. However, none of the two is statistically significant.
We predict that earnings produced under IASB standards are more value relevant than earnings produced under national accounting standards. To test this hypothesis, we regress the market price of shares, as of six months after the year end book value of equity per share and net income per share, in order to estimate R 2 for the period that firms adopt international accounting standards and for the period that firms adopted Portuguese accounting standards.
The results are shown in Tables 8 and 9. As the difference is so high, it should be statistically significant. However, we also performed the Vuong test to compare the R square value in both groups of companies. The significance associated with the test is 0. These results suggest that value relevance decreases with the adoption of IASB standards.
These results are contradictory with previous literature that shows that the adoption of IASB's standards improves value relevance. However, these results can be justified by the fact that most political and economic influences on financial reporting practices remain local BALL, and different. Capital markets are not perfectly integrated and economic and political integration are not yet fully complete BALL, Therefore, some factors such as legal systems, financial systems, role of the accounting profession, tax alignment and ownership concentration that in the past justified differences between accounting systems remain different among European countries.
As a result of the influence of a country's institutional setting on accounting information, the economic consequences of changing from local accounting standards to international accounting standards may vary across countries. Daske et al. Abrir menu Brasil. Abrir menu. Earnings quality; International accounting standards; Value relevance. Keywords: Earnings quality. International accounting standards. Value relevance.
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Working Paper, Massachusetts Institute of Technology, All Related. GAAP 15 Oct Related Standards. Related Projects. See Legal for more information. DTTL also referred to as "Deloitte Global" and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients.
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