The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France
We examine the potential for IFRS to influence the market for SEOs in the UK and France. The divergence between the UK domestic accounting standards and IFRS is minor (low-divergence firms) whereas domestic accounting standards in France differ materially from IFRS (high-divergence firms); however,...
محفوظ في:
| المؤلف الرئيسي: | |
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| مؤلفون آخرون: | , |
| التنسيق: | article |
| منشور في: |
2018
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| الوصول للمادة أونلاين: | http://hdl.handle.net/10725/11698 https://doi.org/10.1080/17449480.2018.1531141 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.tandfonline.com/doi/full/10.1080/17449480.2018.1531141 |
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| _version_ | 1864513489297473536 |
|---|---|
| author | Harakeh, Mostafa |
| author2 | Lee, Edward Walker, Martin |
| author2_role | author author |
| author_facet | Harakeh, Mostafa Lee, Edward Walker, Martin |
| author_role | author |
| dc.creator.none.fl_str_mv | Harakeh, Mostafa Lee, Edward Walker, Martin |
| dc.date.none.fl_str_mv | 2018 2020-01-10T13:13:16Z 2020-01-10T13:13:16Z 2020-01-10 |
| dc.identifier.none.fl_str_mv | 1744-9499 http://hdl.handle.net/10725/11698 https://doi.org/10.1080/17449480.2018.1531141 Harakeh, M., Lee, E., & Walker, M. (2019). The Differential Impact of IFRS Adoption on Aspects of Seasoned Equity Offerings in the UK and France. Accounting in Europe, 16(1), 106-138. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.tandfonline.com/doi/full/10.1080/17449480.2018.1531141 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Accounting in Europe |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | We examine the potential for IFRS to influence the market for SEOs in the UK and France. The divergence between the UK domestic accounting standards and IFRS is minor (low-divergence firms) whereas domestic accounting standards in France differ materially from IFRS (high-divergence firms); however, both countries have similar legal enforcement and institutional settings that might confound the effect of IFRS adoption. We argue that IFRS adoption serves to mitigate information asymmetry and improve accounting quality. Accordingly, we find that, following IFRS adoption, earnings management activities decrease among high-divergence firms prior to issuing SEOs. As a result of the lower levels of earnings management and information asymmetry, we predict and find that the market reaction to issuing SEOs improves significantly for high-divergence firms following IFRS. Given that equity financing becomes less costly, we find that the propensity to issue new SEOs increases among high-divergence firms after IFRS adoption. We find no similar changes among low-divergence firms. The results persist after running a matched-sample analysis and controlling for potential self-selection bias. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_35fe856b04742ba131ea29c6a08fdfa7 |
| identifier_str_mv | 1744-9499 Harakeh, M., Lee, E., & Walker, M. (2019). The Differential Impact of IFRS Adoption on Aspects of Seasoned Equity Offerings in the UK and France. Accounting in Europe, 16(1), 106-138. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/11698 |
| publishDate | 2018 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and FranceHarakeh, MostafaLee, EdwardWalker, MartinWe examine the potential for IFRS to influence the market for SEOs in the UK and France. The divergence between the UK domestic accounting standards and IFRS is minor (low-divergence firms) whereas domestic accounting standards in France differ materially from IFRS (high-divergence firms); however, both countries have similar legal enforcement and institutional settings that might confound the effect of IFRS adoption. We argue that IFRS adoption serves to mitigate information asymmetry and improve accounting quality. Accordingly, we find that, following IFRS adoption, earnings management activities decrease among high-divergence firms prior to issuing SEOs. As a result of the lower levels of earnings management and information asymmetry, we predict and find that the market reaction to issuing SEOs improves significantly for high-divergence firms following IFRS. Given that equity financing becomes less costly, we find that the propensity to issue new SEOs increases among high-divergence firms after IFRS adoption. We find no similar changes among low-divergence firms. The results persist after running a matched-sample analysis and controlling for potential self-selection bias.PublishedN/A2020-01-10T13:13:16Z2020-01-10T13:13:16Z20182020-01-10Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1744-9499http://hdl.handle.net/10725/11698https://doi.org/10.1080/17449480.2018.1531141Harakeh, M., Lee, E., & Walker, M. (2019). The Differential Impact of IFRS Adoption on Aspects of Seasoned Equity Offerings in the UK and France. Accounting in Europe, 16(1), 106-138.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://www.tandfonline.com/doi/full/10.1080/17449480.2018.1531141enAccounting in Europeinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/116982021-03-19T09:10:19Z |
| spellingShingle | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France Harakeh, Mostafa |
| status_str | publishedVersion |
| title | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| title_full | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| title_fullStr | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| title_full_unstemmed | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| title_short | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| title_sort | The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France |
| url | http://hdl.handle.net/10725/11698 https://doi.org/10.1080/17449480.2018.1531141 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.tandfonline.com/doi/full/10.1080/17449480.2018.1531141 |