Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors
We examine the market reaction to events related to the standard-setting process of International Financial Reporting Standard (IFRS) 9 for over 3,000 European firms that have adopted IFRS. We find that the market reaction to IFRS 9 is largely affected by firm-specific factors associated with inform...
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| Format: | Article |
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Elsevier
2017
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| Online Access: | https://eprints.nottingham.ac.uk/52487/ |
| _version_ | 1848798737678204928 |
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| author | Onali, Enrico Ginesti, Gianluca Ballestra, Luca Vincenzo |
| author_facet | Onali, Enrico Ginesti, Gianluca Ballestra, Luca Vincenzo |
| author_sort | Onali, Enrico |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We examine the market reaction to events related to the standard-setting process of International Financial Reporting Standard (IFRS) 9 for over 3,000 European firms that have adopted IFRS. We find that the market reaction to IFRS 9 is largely affected by firm-specific factors associated with information quality and information asymmetry. In particular, lower information asymmetry and higher information quality have a positive effect on market-adjusted returns. This is in conflict with the common view that IFRS 9 will improve accounting quality for those firms that need it most (namely, small firms with low liquidity and concentrated ownership structure). |
| first_indexed | 2025-11-14T20:24:32Z |
| format | Article |
| id | nottingham-52487 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:24:32Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-524872020-05-04T19:57:40Z https://eprints.nottingham.ac.uk/52487/ Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors Onali, Enrico Ginesti, Gianluca Ballestra, Luca Vincenzo We examine the market reaction to events related to the standard-setting process of International Financial Reporting Standard (IFRS) 9 for over 3,000 European firms that have adopted IFRS. We find that the market reaction to IFRS 9 is largely affected by firm-specific factors associated with information quality and information asymmetry. In particular, lower information asymmetry and higher information quality have a positive effect on market-adjusted returns. This is in conflict with the common view that IFRS 9 will improve accounting quality for those firms that need it most (namely, small firms with low liquidity and concentrated ownership structure). Elsevier 2017-05 Article PeerReviewed Onali, Enrico, Ginesti, Gianluca and Ballestra, Luca Vincenzo (2017) Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors. Finance Research Letters, 21 . pp. 72-77. ISSN 1544-6123 Market reaction; Event study; IFRS 9; Information asymmetry; Information quality https://www.sciencedirect.com/science/article/pii/S1544612317300235 doi:10.1016/j.frl.2017.01.002 doi:10.1016/j.frl.2017.01.002 |
| spellingShingle | Market reaction; Event study; IFRS 9; Information asymmetry; Information quality Onali, Enrico Ginesti, Gianluca Ballestra, Luca Vincenzo Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors |
| title | Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors |
| title_full | Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors |
| title_fullStr | Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors |
| title_full_unstemmed | Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors |
| title_short | Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors |
| title_sort | investor reaction to ifrs for financial instruments in europe: the role of firm-specific factors |
| topic | Market reaction; Event study; IFRS 9; Information asymmetry; Information quality |
| url | https://eprints.nottingham.ac.uk/52487/ https://eprints.nottingham.ac.uk/52487/ https://eprints.nottingham.ac.uk/52487/ |