Does mandatory IFRS adoption facilitate debt financing?

A. Florou, U. Kosi, Review of Accounting Studies 20 (2015) 1407–1456.

Download
No fulltext has been uploaded.
Journal Article | Published | English
Author
;
Abstract
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.
Publishing Year
Journal Title
Review of Accounting Studies
Volume
20
Issue
4
Page
1407-1456
eISSN
LibreCat-ID

Cite this

Florou A, Kosi U. Does mandatory IFRS adoption facilitate debt financing? Review of Accounting Studies. 2015;20(4):1407-1456. doi:10.1007/s11142
Florou, A., & Kosi, U. (2015). Does mandatory IFRS adoption facilitate debt financing? Review of Accounting Studies, 20(4), 1407–1456. https://doi.org/10.1007/s11142
@article{Florou_Kosi_2015, title={Does mandatory IFRS adoption facilitate debt financing?}, volume={20}, DOI={10.1007/s11142}, number={4}, journal={Review of Accounting Studies}, author={Florou, Annita and Kosi, Urska}, year={2015}, pages={1407–1456} }
Florou, Annita, and Urska Kosi. “Does Mandatory IFRS Adoption Facilitate Debt Financing?” Review of Accounting Studies 20, no. 4 (2015): 1407–56. https://doi.org/10.1007/s11142.
A. Florou and U. Kosi, “Does mandatory IFRS adoption facilitate debt financing?,” Review of Accounting Studies, vol. 20, no. 4, pp. 1407–1456, 2015.
Florou, Annita, and Urska Kosi. “Does Mandatory IFRS Adoption Facilitate Debt Financing?” Review of Accounting Studies, vol. 20, no. 4, 2015, pp. 1407–56, doi:10.1007/s11142.

Export

Marked Publications

Open Data LibreCat

Search this title in

Google Scholar