Georgakopoulos, Georgios, Gounopoulos, Dimitrios, Huang, Chen, Patsika, Victoria (2022) The impact of IFRS adoption on IPOs management earnings forecasts in Australia. Journal of International Accounting, Auditing and Taxation, 48 . Article Number 100490. ISSN 1061-9518. (doi:10.1016/j.intaccaudtax.2022.100490) (KAR id:92638)
PDF
Author's Accepted Manuscript
Language: English
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
|
|
Download this file (PDF/781kB) |
Preview |
Request a format suitable for use with assistive technology e.g. a screenreader | |
Official URL: https://doi.org/10.1016/j.intaccaudtax.2022.100490 |
Abstract
In this study, we investigate the accuracy of management earnings forecasts under International Financial Reporting Standards (IFRS) in the context of an initial public offering (IPO). We observe a decline in management forecast errors (FEs) in Australia following the mandatory implementation of IFRS in 2005. Further evidence suggests that IPO management earnings forecasts become more conservative in post-IFRS periods. We argue that IFRS enables investors to better evaluate IPO firms’ performance and demand higher returns from firms that report inflated and inaccurate earnings forecasts. We also show that over-optimistic earnings forecasts and larger forecasting errors result in greater underpricing under the IFRS regime. Overall, this study suggests that IFRS, as a set of highquality accounting standards, improved corporate disclosure quality and the information environment.
Item Type: | Article |
---|---|
DOI/Identification number: | 10.1016/j.intaccaudtax.2022.100490 |
Uncontrolled keywords: | IFRS, IPOs, information environment, management earnings forecast accuracy, corporate disclosure |
Subjects: | H Social Sciences |
Divisions: | Divisions > Kent Business School - Division > Department of Accounting and Finance |
Depositing User: | Chen Huang |
Date Deposited: | 10 Jan 2022 16:09 UTC |
Last Modified: | 24 Jul 2024 23:00 UTC |
Resource URI: | https://kar.kent.ac.uk/id/eprint/92638 (The current URI for this page, for reference purposes) |
- Link to SensusAccess
- Export to:
- RefWorks
- EPrints3 XML
- BibTeX
- CSV
- Depositors only (login required):