Market reaction to and valuation of IFRS reconciliation adjustments: first evidence from the UK

By Joanne Horton, George Serafeim. 2010

289 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c62f304e8db0435f5abb8e90414b3bd2e63ae1d0

How researchers see this paper

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In Accounting

1. Martin Walker
2. Philip Brown
3. Jayne M. Godfrey
4. K. Chalmers
5. Greg Clinch
6. Xi Li
7. Emmanuel T. De George
8. J. Aharony

In Strategy and Management

1. Philip Brown
2. Martin Walker
3. K. Chalmers
4. Greg Clinch
5. L. Simone
6. Danielle Lyssimachou
7. Pawel Bilinski
8. Jayne M. Godfrey

Citations in the corpus

• Does Mandatory IFRS Adoption Improve Information Comparability (2012, unknown): “Because mandatory IFRS are some of the most important financial reporting regulations in recent years, many studies have examined the various effects of their adoption (e.g., Capkun et al. 2008; Daske et al. 2008; Armstrong et al. 2010; Horton and Serafeim 2010; Clarkson et al. 2011).”
• Target price accuracy:international evidence (2013, background): “…that finds that the degree of enforcement of accounting standards and disclosure quality influence EPS forecast accuracy (Hope, 2003a, 2003b), and that the mandatory IFRS implementation has improved EPS forecast accuracy (Byard et al. 2011; Horton and Serafeim 2010; and Preiato et al. 2010).”
• Does a common set of accounting standards affect tax-motivated income shifting for multinational firms? (2016, background): “Studies examining capital markets effects of IFRS include Armstrong et al. (2010), Beneish et al. (2014), Christensen et al. (2013), Daske et al. (2013, 2008) and Horton and Serafeim (2010).”
• Mandatory IFRS Adoption and Financial Statement Comparability (2013, methodology): “We measure reconciling items using data from Horton and Serafeim (2010).(21) If core information quality is high for firms having low change in”
• The value relevance of IFRS in the European banking industry (2011, background): “Horton and Serafeim (2007) inquire whether there is market reaction or value relevance of”
• Changes in value relevance of accounting information upon IFRS adoption: Evidence from Australia (2011, background): “…al., 2008); disclosure quality (Daske and Gebhardt, 2006); and the value relevance of accounting numbers in either a single jurisdictional setting (Chalmers et al., 2008; Gjerde et al., 2008; Horton and Serafeim, 2010) or a multi-jurisdictional setting (Barth et al., 2008; Clarkson et al., 2010).”
• International Financial Reporting Standards: what are the benefits? (2011, background): “A British study found UK GAAP–IFRS reconciliations (foreshadowed under IFRS 1) were value-relevant, although there was evidence managers had delayed the disclosure of bad news associated with IFRS adoption until after the event (Horton and Serafeim 2008 ).”
• Relevance of Differences Between Net Income Based on IFRS and Domestic Standards for European Firms (2012, unknown): “For a sample of 80 voluntary German non-financial IFRS adopters, Hung and Subramanyam (2007) finds that for those firms adopting between 1998 to 2002, the adjustment to equity book value is incrementally value relevant, but the aggregate net income adjustment is not.”
• A review of the IFRS adoption literature (2016, background): “Based on a sample of 297 large non-financial UK firms that adopted IFRS mandatorily, Horton and Serafeim (2010) find that the disclosure of IFRS reconciliation adjustments provide information content when the reconciliations are negative, suggesting that IFRS allows for the credible communication of”
• The Value-Relevance of Adopting IFRS: Evidence from 145 NGAAP Restatements (2008, unknown): “(2007), Horton and Serafeim (2007) and Van der Meulen, Gaeremynck and Willekens”
• The value relevance of intellectual capital disclosures (2011, background): “, 2008), and since IFRS adoption (e.g. Callao et al., 2007; Gjerde et al., 2008; Horton and Serafeim, 2010).”
• Intended and Unintended Consequences of Mandatory IFRS Adoption: A Review of Extant Evidence and Suggestions for Future Research (2013, unknown): “While Horton and Serafeim (2010) argue that their evidence is consistent with IFRS reconciliations containing value-relevant information for shareholders, Christensen et al. (2009) claim that the price reactions reflect wealth transfers between lenders and shareholders.”
• The Impact of Mandatory IFRS Adoption on Equity Valuation of Accounting Numbers for Security Investors in the EU (2010, background): “…judicial systems, better investor protection 542 J. Aharony et al. laws (La Porta et al., 1998, 2002), and a higher quality of accounting practices (including more transparent reporting) and auditing systems than civil law countries (Hung, 2001; Francis et al., 2003; Horton and Serafeim, 2009).”
• What drives the comparability effect of mandatory IFRS adoption? (2014, unknown): “…first-order effects, namely, changes in financial reporting quality (see Ahmed et al. 2013, Atwood et al. 2011, Landsman et al. 2011), as well as second-order capital-market consequences1 (see Beneish et al. 2012; Daske et al. 2008; Horton and Serafeim 2010; Li 2010; Yu 2010) of the IFRS mandate.”