TY - JOUR
T1 - Assessing the value relevance of accounting data after the introduction of IFRS in Europe
AU - Devalle, Alain
AU - Onali, Enrico
AU - Magarini, Riccardo
PY - 2010
Y1 - 2010
N2 - Since 2005, European-listed companies have been required to prepare their consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). We examine whether value relevance increased following the introduction of IFRS, using a sample of 3,721 companies listed on five European stock exchanges: Frankfurt, Madrid, Paris, London, and Milan. We find mixed evidence of an increase in value relevance. However, the influence of earnings on share price increased following the introduction of IFRS in Germany, France, and the United Kingdom, while the influence of book value of equity decreased (except for the United Kingdom).
AB - Since 2005, European-listed companies have been required to prepare their consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). We examine whether value relevance increased following the introduction of IFRS, using a sample of 3,721 companies listed on five European stock exchanges: Frankfurt, Madrid, Paris, London, and Milan. We find mixed evidence of an increase in value relevance. However, the influence of earnings on share price increased following the introduction of IFRS in Germany, France, and the United Kingdom, while the influence of book value of equity decreased (except for the United Kingdom).
UR - http://www.scopus.com/inward/record.url?scp=77953151801&partnerID=8YFLogxK
U2 - 10.1111/j.1467-646X.2010.01037.x
DO - 10.1111/j.1467-646X.2010.01037.x
M3 - Article
AN - SCOPUS:77953151801
SN - 0954-1314
VL - 21
SP - 85
EP - 119
JO - Journal of International Financial Management and Accounting
JF - Journal of International Financial Management and Accounting
IS - 2
ER -