---
_id: '5101'
abstract:
- lang: eng
  text: Prior literature finds that International Financial Reporting Standards (IFRS)
    adopters enjoy lower financing costs subsequent to IFRS adoption. We predict and
    find that mandatory IFRS adopters exploit lower financing costs to increase market
    share vis-à-vis non-adopters. This effect is robust across several different model
    specifications in a sample capturing the universe of public and private firms
    in the EU, in a matched sample of public and private firms, and in a public firm
    sample comparing mandatory and voluntary IFRS adopters. We further find that IFRS
    is associated with an increase (decrease) in industry sales concentration (competition),
    consistent with large public firms increasing market share. In supplemental analyses,
    we find that mandatory adopters issue more equity and debt after IFRS adoption
    and that larger market share gains accrue to those mandatory IFRS adopters that
    issue more equity and debt after IFRS adoption. Overall, we provide evidence of
    unintended product market consequences of IFRS adoption.
author:
- first_name: Jimmy F
  full_name: Downes, Jimmy F
  last_name: Downes
- first_name: Vanessa
  full_name: Flagmeier, Vanessa
  id: '8084'
  last_name: Flagmeier
- first_name: David
  full_name: Godsell, David
  last_name: Godsell
citation:
  ama: Downes JF, Flagmeier V, Godsell D. Product market effects of IFRS adoption.
    <i>Journal of Accounting and Public Policy</i>. 2018;37(5):376-401. doi:<a href="https://doi.org/10.1016/j.jaccpubpol.2018.09.004">10.1016/j.jaccpubpol.2018.09.004</a>
  apa: Downes, J. F., Flagmeier, V., &#38; Godsell, D. (2018). Product market effects
    of IFRS adoption. <i>Journal of Accounting and Public Policy</i>, <i>37</i>(5),
    376–401. <a href="https://doi.org/10.1016/j.jaccpubpol.2018.09.004">https://doi.org/10.1016/j.jaccpubpol.2018.09.004</a>
  bibtex: '@article{Downes_Flagmeier_Godsell_2018, title={Product market effects of
    IFRS adoption}, volume={37}, DOI={<a href="https://doi.org/10.1016/j.jaccpubpol.2018.09.004">10.1016/j.jaccpubpol.2018.09.004</a>},
    number={5}, journal={Journal of Accounting and Public Policy}, publisher={Elsevier},
    author={Downes, Jimmy F and Flagmeier, Vanessa and Godsell, David}, year={2018},
    pages={376–401} }'
  chicago: 'Downes, Jimmy F, Vanessa Flagmeier, and David Godsell. “Product Market
    Effects of IFRS Adoption.” <i>Journal of Accounting and Public Policy</i> 37,
    no. 5 (2018): 376–401. <a href="https://doi.org/10.1016/j.jaccpubpol.2018.09.004">https://doi.org/10.1016/j.jaccpubpol.2018.09.004</a>.'
  ieee: J. F. Downes, V. Flagmeier, and D. Godsell, “Product market effects of IFRS
    adoption,” <i>Journal of Accounting and Public Policy</i>, vol. 37, no. 5, pp.
    376–401, 2018.
  mla: Downes, Jimmy F., et al. “Product Market Effects of IFRS Adoption.” <i>Journal
    of Accounting and Public Policy</i>, vol. 37, no. 5, Elsevier, 2018, pp. 376–401,
    doi:<a href="https://doi.org/10.1016/j.jaccpubpol.2018.09.004">10.1016/j.jaccpubpol.2018.09.004</a>.
  short: J.F. Downes, V. Flagmeier, D. Godsell, Journal of Accounting and Public Policy
    37 (2018) 376–401.
date_created: 2018-10-31T06:59:36Z
date_updated: 2022-01-06T07:01:38Z
department:
- _id: '551'
- _id: '189'
doi: 10.1016/j.jaccpubpol.2018.09.004
intvolume: '        37'
issue: '5'
jel:
- D43
- G32
- G38
keyword:
- Financial reporting regulationProduct market competition
language:
- iso: eng
page: 376-401
publication: Journal of Accounting and Public Policy
publication_status: published
publisher: Elsevier
status: public
title: Product market effects of IFRS adoption
type: journal_article
user_id: '64756'
volume: 37
year: '2018'
...