Economic Benefits of Adopting IFRS or US-GAAP – Have the Expected Cost of Equity Capital Really Decreased?

By Holger Daske. 2006

499 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0ebdb0c5b9fda0548d7b284ee63084e74936ba51

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Strategy and Management

Citations in the corpus

Capital Allocation and Timely Accounting Recognition of Economic Losses (2011, unknown): “Papers include Giner and Rees (2001), Raonic et al. (2004), Lara et al. (2005), Dargenidou et al. (2007), Jenkins et al. (2009), Lara et al. (2009), and Shuto and Takada (2010).”
The European IFRS experiment: objectives, research challenges and some early evidence (2011, background): “The seminal analysis that has guided the research design in much research that has followed is Daske et al. (2008). They examine a large global sample comprising both voluntary and mandatory IFRS adopters as well as benchmark firms that use local GAAP (often US firms using US GAAP) throughout the pe”
IFRS Adoption and Accounting Quality: A Review (2007, background): “In contrast, Daske (2006) fails to find a decrease in the cost of equity, measured from several stock valuation models for German firms adopting IAS or US GAAP.”
International Accounting Standards and Accounting Quality (2008, unknown): “…(2005) finds that German firms applying IAS do not exhibit differences in earnings management when compared to firms applying German GAAP; Daske (2006) finds no evidence of a reduction in cost of capital for German firms that apply IAS; Hung and Subramanyam (2004) finds that accounting…”
Introduction of International Accounting Standards, Disclosure Quality and Accuracy of Analysts' Earnings Forecasts (2013, background): “…of IASB and FASB they are becoming even more alike in the course of time), whereas the differences between IFRS and US GAAP on the one hand and German GAAP on the other hand are very marked (see Leuz and Verrecchia, 2000; Cuijpers and Buijink, 2005; Daske, 2006; Daske and Gebhardt, 2006).”
Cross-sectional variation in the economic consequences of international accounting harmonization: The case of mandatory IFRS adoption in the UK ☆ (2007, methodology): “These results highlight another dimension of the implication of IFRS adoption not explored in existing literature, which suggest either a reduced cost of capital (Leuz & Verrecchia, 2000) or no effect (Daske, 2006; Cuijpers & Buijink, 2005).”
A review of the IFRS adoption literature (2016, methodology): “, Leuz and Verrecchia, 2000), other studies document little support for the claim that voluntary IFRS adoption by itself improves liquidity or decreases cost of capital (Daske, 2006; Daske et al., 2013).”
Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital (2009, unknown): “Despite the mandatory adoption of IFRS by over 8,000 EU firms, there is limited evidence on its capital market effects (e.g., Daske 2006; Daske et al. 2008).”
Use of Forecasts of Earnings to Estimate and Compare Cost of Capital Across Regimes (2006, unknown): “For example, it is possible that analysts’ forecasts for firms that have changed from domestic to international accounting standards (as in Daske (2005), for example) may tend to have a different degree of optimism than forecasts for firms that have not changed.”
The Impact of Corporate Governance on IFRS Adoption Choices (2013, unknown): “Other studies, however, find only modest impacts of IFRS adoption on market liquidity and the cost of equity capital (Daske, 2006; Daske et al., 2008; Li, 2010).”
The Development of Accounting Quality of IAS and IFRS Over Time: The Case of Germany (2009, unknown): “On the contrary, Daske (2006) finds an increase in cost of capital for these companies.”
International Financial Reporting Standards: what are the benefits? (2011, background): “One of the earliest and most widely cited studies of the cost of capital found no evidence that IFRS led to a lower cost of capital among German companies that adopted IAS/IFRS or US GAAP between 1993 and 2002 (Daske 2006).”
Asymmetric benchmarking in bank credit rating (2012, unknown): “Daske (2006) examined voluntary IAS adoption by German firms and found that IFRS firms even exhibit a higher cost of equity capital than local GAAP firms.”