Effects of mandatory adoption of IFRS on market liquidity in Brazil

Q4 Economics, Econometrics and Finance

International Journal of Accounting, Auditing and Performance Evaluation Pub Date : 2020-04-14 DOI:10.1504/ijaape.2020.10028478

Ricardo Luiz Menezes da Silva, P. Nardi

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引用次数: 2

Abstract

The mandatory International Financial Reporting Standard (IFRS) adoption extended to all companies listed on the stock exchange in Brazil. Some advocates that the quality of financial statements under IFRS is superior, providing many benefits to market participants, such as increased stock liquidity. Liquidity has been less explored in Brazil though, representing a research opportunity without the influence of confounding events. Therefore, the aim of this study is to analyse the effects of mandatory IFRS adoption on stock liquidity in Brazil. The findings confirm the research hypothesis, indicating that the mandatory adoption is not associated with increased stock liquidity. These results can be explained by the limited disclosure incentives. In addition, no change is found in terms of reporting enforcement. Our findings show that the international regulator still faces challenges due to cultural and institutional aspects. The lack of an international regulator casts doubts on greater uniformity in the application of IFRS.

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强制采用国际财务报告准则对巴西市场流动性的影响

强制性国际财务报告准则(IFRS)的采用扩展到所有在巴西证券交易所上市的公司。一些人主张，根据国际财务报告准则编制的财务报表质量更好，为市场参与者提供了许多好处，例如增加了股票的流动性。然而，巴西对流动性的探索较少，这是一个没有混杂事件影响的研究机会。因此，本研究的目的是分析强制性采用国际财务报告准则对巴西股票流动性的影响。研究结果证实了研究假设，表明强制采用与股票流动性增加无关。这些结果可以用有限的信息披露激励来解释。此外，报告执行方面没有发现任何变化。我们的研究结果表明，由于文化和制度方面的原因，国际监管机构仍然面临挑战。国际监管机构的缺乏使人们对国际财务报告准则的统一应用产生了怀疑。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Accounting, Auditing and Performance Evaluation Economics, Econometrics and Finance-Finance

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： IJAAPE publishes original scholarly papers across the whole spectrum of: financial accounting, managerial accounting, accounting education, auditing, taxation, public sector accounting, capital market and accounting, accounting information systems, performance evaluation, corporate governance, ethics, and financial management. All methodologies, such as analytical, empirical, behavioural, surveys, and case studies are welcome. IJAAPE encourages contributions especially from emerging markets and economies in transition and studies whose results are applicable across nation states or capable of being adapted to the different accounting and business environments.