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Impact of IFRS: evidence from Spanish listed companies

Impact of IFRS: evidence from Spanish listed companies Purpose – In this paper, the authors aim to analyze the impact of International Financial Reporting Standards' (IFRS) mandatory adoption on the financial statements of Spanish listed companies. Design/methodology/approach – The authors estimate a panel data model by generalized least squares' within‐between in order to contrast the possible structural breaks in the relations between income statement items and balance sheet items, using data from the 35 largest listed companies. Findings – The results show significant changes on these relations, but with different signs and degrees of intensity depending on the balance sheet item analyzed. Research limitations/implications – The data choice introduces a size bias that could be taken into account in the generalization of the results to other listed companies. Originality/value – This work is developed using a mandatory, local, accounting and panel data framework for first time using Spanish listed companies in order to measure the impact of the IFRS adoption. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Accounting and Information Management Emerald Publishing

Impact of IFRS: evidence from Spanish listed companies

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Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
1834-7649
DOI
10.1108/IJAIM-03-2014-0016
Publisher site
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Abstract

Purpose – In this paper, the authors aim to analyze the impact of International Financial Reporting Standards' (IFRS) mandatory adoption on the financial statements of Spanish listed companies. Design/methodology/approach – The authors estimate a panel data model by generalized least squares' within‐between in order to contrast the possible structural breaks in the relations between income statement items and balance sheet items, using data from the 35 largest listed companies. Findings – The results show significant changes on these relations, but with different signs and degrees of intensity depending on the balance sheet item analyzed. Research limitations/implications – The data choice introduces a size bias that could be taken into account in the generalization of the results to other listed companies. Originality/value – This work is developed using a mandatory, local, accounting and panel data framework for first time using Spanish listed companies in order to measure the impact of the IFRS adoption.

Journal

International Journal of Accounting and Information Management – Emerald Publishing

Published: Apr 29, 2014

Keywords: Finance; Listed companies; Accounting; Panel data; Spain; Financial statements; International Accounting Standards; Mandatory adoption

References

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