Does mandatory IFRS adoption affect large and small public firms' accounting quality differently? Evidence from Canada

IF 1.2 Q3 BUSINESS, FINANCE
Gulraze Wakil , Karin A. Petruska
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引用次数: 2

Abstract

Canada adopted International Financial Reporting Standards (IFRS) in 2011. We investigate the impact of this mandatory change by examining whether value relevance and non-market-based accounting information changed for a comprehensive set of Canadian companies on the Toronto Stock Exchange (TSX). Our findings reveal the effects of IFRS adoption are not consistent across all firms as demonstrated by a minimal change in value relevance for large firms, but a significant increase for small firms. These differences are primarily attributed to the weakening (strengthening) relationship of book value to stock price for large (small) firms and a strengthening (weakening) relationship of earnings to stock price for large (small) firms. This suggests the goal of IFRS in providing improvement to the balance sheet is only achieved for small firms in Canada. For the non-market-based accounting quality measures of earnings persistence, earnings smoothing, earnings discretion, and the frequency of small profits to losses, the findings are mixed for large firms, but improve for small firms after IFRS adoption.

强制性采用国际财务报告准则对大型和小型上市公司会计质量的影响是否不同?来自加拿大的证据
加拿大于2011年采用了国际财务报告准则(IFRS)。我们通过检查价值相关性和非市场化会计信息是否改变了多伦多证券交易所(TSX)的一组加拿大公司来调查这一强制性变化的影响。我们的研究结果显示,采用国际财务报告准则的影响在所有公司中并不一致,大公司的价值相关性变化很小,但小企业的价值相关性显著增加。这些差异主要归因于大(小)公司的账面价值与股票价格的关系减弱(增强),以及大(小)公司的收益与股票价格的关系增强(减弱)。这表明,国际财务报告准则在提供改善资产负债表的目标只实现了加拿大的小公司。对于非市场化的会计质量指标,如盈余持续性、盈余平滑、盈余自由裁量权和微利到亏损的频率,大公司的结果好坏参半,但在采用国际财务报告准则后,小企业的结果有所改善。
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来源期刊
Advances in Accounting
Advances in Accounting BUSINESS, FINANCE-
CiteScore
2.50
自引率
6.20%
发文量
29
期刊介绍: Advances in Accounting, incorporating Advances in International Accounting continues to provide an important international forum for discourse among and between academic and practicing accountants on the issues of significance. Emphasis continues to be placed on original commentary, critical analysis and creative research.
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