---
_id: '4035'
abstract:
- lang: eng
  text: We examine whether the mandated introduction of International Financial Reporting
    Standards (IFRS) is associated with the propensity to access the public rather
    than private debt market and the cost of debt. We use a global sample of public
    bonds and private loans and find that mandatory IFRS adopters are more likely,
    post-IFRS, to issue bonds than to borrow privately. We also find that mandatory
    IFRS adopters pay lower bond yield spreads, but not lower loan spreads, after
    the mandate. These findings are consistent with debt providers responding positively
    to financial reporting of higher quality and comparability, but only when there
    is a greater reliance on publicly available financial statements than private
    communication. Lastly, we document that the observed debt market benefits are
    concentrated in countries with larger differences between domestic GAAP and IFRS
    and are present even for EU countries that did not experience concurrent financial
    reporting enforcement or other institutional reforms. Overall, our study documents
    positive economic consequences around the mandated IFRS adoption for corporate
    debt financing and, in particular, for bond financing.
author:
- first_name: Annita
  full_name: Florou, Annita
  last_name: Florou
- first_name: Urska
  full_name: Kosi, Urska
  id: '54068'
  last_name: Kosi
citation:
  ama: Florou A, Kosi U. Does mandatory IFRS adoption facilitate debt financing? <i>Review
    of Accounting Studies</i>. 2015;20(4):1407-1456. doi:<a href="https://doi.org/10.1007/s11142">10.1007/s11142</a>
  apa: Florou, A., &#38; Kosi, U. (2015). Does mandatory IFRS adoption facilitate
    debt financing? <i>Review of Accounting Studies</i>, <i>20</i>(4), 1407–1456.
    <a href="https://doi.org/10.1007/s11142">https://doi.org/10.1007/s11142</a>
  bibtex: '@article{Florou_Kosi_2015, title={Does mandatory IFRS adoption facilitate
    debt financing?}, volume={20}, DOI={<a href="https://doi.org/10.1007/s11142">10.1007/s11142</a>},
    number={4}, journal={Review of Accounting Studies}, author={Florou, Annita and
    Kosi, Urska}, year={2015}, pages={1407–1456} }'
  chicago: 'Florou, Annita, and Urska Kosi. “Does Mandatory IFRS Adoption Facilitate
    Debt Financing?” <i>Review of Accounting Studies</i> 20, no. 4 (2015): 1407–56.
    <a href="https://doi.org/10.1007/s11142">https://doi.org/10.1007/s11142</a>.'
  ieee: 'A. Florou and U. Kosi, “Does mandatory IFRS adoption facilitate debt financing?,”
    <i>Review of Accounting Studies</i>, vol. 20, no. 4, pp. 1407–1456, 2015, doi:
    <a href="https://doi.org/10.1007/s11142">10.1007/s11142</a>.'
  mla: Florou, Annita, and Urska Kosi. “Does Mandatory IFRS Adoption Facilitate Debt
    Financing?” <i>Review of Accounting Studies</i>, vol. 20, no. 4, 2015, pp. 1407–56,
    doi:<a href="https://doi.org/10.1007/s11142">10.1007/s11142</a>.
  short: A. Florou, U. Kosi, Review of Accounting Studies 20 (2015) 1407–1456.
date_created: 2018-08-22T07:47:41Z
date_updated: 2023-01-24T15:32:37Z
department:
- _id: '551'
- _id: '635'
- _id: '186'
doi: 10.1007/s11142
extern: '1'
intvolume: '        20'
issue: '4'
jel:
- G15
- K22
- M41
- M48
keyword:
- Accounting regulation
- IFRS
- Accounting quality
- Public and private debt markets
- Cost of debt
language:
- iso: eng
page: 1407-1456
publication: Review of Accounting Studies
publication_identifier:
  eissn:
  - 1573-7136
publication_status: published
status: public
title: Does mandatory IFRS adoption facilitate debt financing?
type: journal_article
user_id: '54068'
volume: 20
year: '2015'
...