0000000000160827
AUTHOR
Mariano Gonzalez-sanchez
The Effects of IFRS Adoption on the Unconditional Conservatism of Spanish Listed Companies
This paper analyses the effects on unconditional conservatism of the mandatory adoption of International Financial Reporting Standards (IFRS) by Spanish listed companies in January 2005. The lack of robustness in the previous evidence justifies analysing this issue from different perspectives. To this end, we use, for the first time in this context, Ahmed and Duellman’s methodology (J. Account. Econ., 2007). In its design, these authors consider the impact of growth options and other future incomes, controlling for the idiosyncratic factors that the literature has found to condition this type of conservatism. Additionally, beyond the pooled regression techniques usually used, we use econome…
IFRS Adoption and Unconditional Conservatism: An Accruals-Based Analysis
This paper finds its motivation in the lack of robust results in the literature that analyse the effect on unconditional conservatism of the mandatory adoption of International Financial Reporting Standards (IFRS) by the Spanish listed companies. We provide new evidence by using, for the first time in this context, a non-market-based measure of unconditional conservatism: the accruals-based measure proposed by Givoly and Hayn (2000). We use econometric panel data techniques applied to a panel of 96 non-financial firms and 10 years. The results show evidence that support a significant reduction of the unconditional conservatism of Spanish listed companies due to the adoption of IFRS.