Firm value and market liquidity around the adoption of common accounting standards
Publication
, Journal Article
Gao, P; Jiang, X; Zhang, G
Published in: Journal of Accounting and Economics
August 1, 2019
The adoption of common accounting standards generates both a precision effect and a network effect. When firms use common standards, investors can leverage their knowledge about the standards to process more financial reports. Embedding both effects into the economic framework of Baiman and Verrecchia (1995, 1996), we study the adoption's effects on reporting precision, firm value, and liquidity of both the switcher and the early adopter. The model helps address the identification challenge and reconcile some existing results in the empirical literature on IFRS adoption. It also generates implications for standardizing disclosure and accounting methods.
Duke Scholars
Published In
Journal of Accounting and Economics
DOI
ISSN
0165-4101
Publication Date
August 1, 2019
Volume
68
Issue
1
Related Subject Headings
- Accounting
- 3801 Applied economics
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
- 1502 Banking, Finance and Investment
- 1501 Accounting, Auditing and Accountability
- 1402 Applied Economics
Citation
APA
Chicago
ICMJE
MLA
NLM
Gao, P., Jiang, X., & Zhang, G. (2019). Firm value and market liquidity around the adoption of common accounting standards. Journal of Accounting and Economics, 68(1). https://doi.org/10.1016/j.jacceco.2018.11.001
Gao, P., X. Jiang, and G. Zhang. “Firm value and market liquidity around the adoption of common accounting standards.” Journal of Accounting and Economics 68, no. 1 (August 1, 2019). https://doi.org/10.1016/j.jacceco.2018.11.001.
Gao P, Jiang X, Zhang G. Firm value and market liquidity around the adoption of common accounting standards. Journal of Accounting and Economics. 2019 Aug 1;68(1).
Gao, P., et al. “Firm value and market liquidity around the adoption of common accounting standards.” Journal of Accounting and Economics, vol. 68, no. 1, Aug. 2019. Scopus, doi:10.1016/j.jacceco.2018.11.001.
Gao P, Jiang X, Zhang G. Firm value and market liquidity around the adoption of common accounting standards. Journal of Accounting and Economics. 2019 Aug 1;68(1).
Published In
Journal of Accounting and Economics
DOI
ISSN
0165-4101
Publication Date
August 1, 2019
Volume
68
Issue
1
Related Subject Headings
- Accounting
- 3801 Applied economics
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
- 1502 Banking, Finance and Investment
- 1501 Accounting, Auditing and Accountability
- 1402 Applied Economics