Hong, Hung, and Lobo (2014) [24] | ・ Examine the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets. | ・ Sample of 3651 IPOs worldwide, including 1540 firms in 20 mandatory IFRS adopters countries in 2005, and 2111 firms of 9 non IFRS adopters countries with sample periods of 2003-2004 and 2006-2007. | ・ Mandatory IFRS adoption decrease IPO underpricing and increase the relative proceeds from foreign markets. ・ Mandatory IFRS adoption has a greater impact on IPO underpricing and relative foreign proceeds for firms in countries with a larger number of accounting changes, and this relation is more pronounced among firms in countries with stronger implementation credibility. ・ The decrease in underpricing after mandatory IFRS adoption holds for both domestic IPOs and global IPOs, but this effect is more pronounced for global IPOs than for domestic IPOs. |
Khurana and Michas (2011) [22] | ・ Examines home bias portfolios investments whether mandatory IFRS adoption at the country level lowers US investors’ propensity to overweight domestic stocks in their common stock portfolios. | ・ Sample of 85 countries, 33 that adopted IFRS during the 2003-2007 time period, 30 that continued to mandate local accounting standards through 2007, and 22 that mandated the use of IFRS even before 2003. | ・ A common set of global accounting standards matter for portfolio holdings of US investors and the enforcement of standards is a key factor in making investments outside the US ・ US home bias decreases for countries that mandate IFRS adoption, after controlling for country-fixed effects. ・ Mandatory IFRS adoption reduces the US home bias greater for countries with larger differences between IFRS and their domestic accounting standards, for countries with a stricter rule of law and a common law legal origin, and in countries with greater incentives to report high-quality financial information. |
Lee and Fargher (2010) [21] | ・ Examine whether the adoption of IFRS is associated with an increase in the level of investment in foreign equities held by Australian investors. | ・ Sample 256 observations of 40 countries, including 21 IFRS-adopters and 19 non-adopters in 2002 to 2008. | ・ The adoption of IFRS is associated with greater cross-border equity investment. ・ Investors benefited from a reduction in information asymmetry through an increase in the comparability of financial reports. |
Louis and Urcan (2014) [15] | ・ Examine whether the 2005 mandatory adoption of IFRS leads to an increase in cross-border acquisitions into the adopting countries and whether any documented effect is driven by concurrent enforcement changes. | ・ Sample of completed acquisitions 885 of listed firms from the adopting countries and 2285 acquisitions of unlisted companies from 2000 to 2010. | ・ Mandatory IFRS adoption substantially increases cross-border acquisitions of listed companied in the adopting countries. ・ IFRS adoption increase significantly the odds of a cross-border acquisition of a listed firm in the adopting countries. ・ The increase in the flow of investment into the IFRS adopting countries comes from both non-IFRS adopting countries and other IFRS adopting countries. |
Shima, and Gordon (2011) [23] | ・ Investigate whether a country’s use of IFRS is associated with increased US investment in foreign equities. | ・ Sample of US holdings of foreign equities for the years 2003-2006 in 44 countries. | ・ IFRS adoption is associated with US investment when it is combined with a strong regulatory environment, strong enforcement regime. ・ Mandatory IFRS adoption is attractive to US investors only when combined with a strong regulatory environment. |