Uniform Accounting Regimes and Managerial Learning from Stock Prices
Uniform Accounting Regimes and Managerial Learning from Stock Prices
dc.contributor.author | Harré, Simon | |
dc.contributor.author | Novotny-Farkas, Zoltán | |
dc.contributor.author | Renders, Annelies | |
dc.date.accessioned | 2021-11-12T18:39:27Z | |
dc.date.available | 2021-11-12T18:39:27Z | |
dc.date.issued | 2021 | |
dc.description.abstract | We investigate whether the introduction of IFRS and associated enforcement changes influence managerial learning from stock prices (proxied by revelatory price efficiency (RPE)), particularly for high-growth firms. The introduction of IFRS creates a more uniform accounting regime across different countries. Uniform accounting regimes reduce the ability of managers of high-growth firms to provide more precise information to investors. This in turn lowers the ability of informed investors to incorporate private information about growth opportunities into the stock price. As a result, managers of high-growth firms learn less from stock prices after the introduction of IFRS. Furthermore, we expect that a strong enforcement enhances this effect, as it improves compliance with IFRS, resulting in even lower precision of financial information for high-growth firms. Our findings are consistent with these predictions. | |
dc.identifier.uri | http://hdl.handle.net/10125/76882 | |
dc.subject | IFRS | |
dc.subject | accounting standards | |
dc.subject | financial reporting enforcement | |
dc.subject | managerial learning from stock prices | |
dc.subject | unintended consequences | |
dc.title | Uniform Accounting Regimes and Managerial Learning from Stock Prices | |
dc.type.dcmi | Text |
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