The Benefits of IFRS Adoption – A Survey of Chief Financial Officers of Romanian Listed Companies
The move towards internationalization of accounting encountered a great boost, when in 2002 EU delegated the IASB to provide the accounting standards to be applied inside its frontiers. Among the incentives of the standardization of accounting on the international level, is the reduction of the cost of capital. Romania made the move towards IFRS before EU, when the country was not yet a member of it. Even if this made Romania a special case, it was scarcely approached. The leak of real data is usually the reason for avoiding. The novelty of this paper is that it offers an insight from the reality of Romanian companies and their view regarding the IFRS. The paper is based on a survey that the authors made among the companies listed on the first two tiers of the Bucharest Stock Exchange (BSE), which are basically, the most important companies in the country.
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[5]. Daske H., L. Hail, C. Leuz, and R. Verdi. (2007). "Adopting a label:
Heterogeneity in the economic consequences of IFRS adoption".
Working paper, University of Manneheim, the Wharton School,
University of Chicago, and MIT, available at: http://papers.ssrn.com/
sol3/papers.cfm?abstract_id=1502413
[6]. Daske H., L. Hail, C. Leuz, and R. Verdi (2008). Mandatory IFRS
reporting around the world: Early evidence on the economic
consequences. Journal of Accounting Research 46 (5): 1085-1142,
disponibil si la: http://ssrn.com/abstract=1024240
[7]. H. Chen, Q Tang., Y. Jiang , Z. Lin, "The Role of IFRS in Accounting
Quality: Evidence from European Union", Journal of International
Financial Management & Accounting, 2010, Vol.21 (3)
[8]. H. Ashbaugh, M. Pinicus, "Domestic Accounting Standards,
International Accounting Standards, and the Predictability of Earnings",
Journal of Accounting Research, 2001, 39 (3): 417-434.
[9]. I.Ionascu, M. Ionascu, L. Olimid, D.A. Calu, "An Empirical Evaluation
of the Costs of Harmonizing Romanian Accounting with International
Regulations (EU Directives and IAS/IFRS), Accounting in Europe,
2007, Vol.4.Issue 2, pp 169-206.
[10]. L. Munteanu, I. Ionascu, M. Ionascu, "Disclosure quality and the Cost of
Capital: Evidence for Romania", "Financial Audit", 2011, Vol.9, No.1,
pp.16-20.
[11]. M. Mangena, R. Pike, J. Li (2010). Intellectual Capital Disclosure
Practices and Effects on the Cost of Equitz Capital: UK Evidence,
Published by The Institute of Chartered Accountants of Scotland, (2010)
online available: http://www.icas.org.uk/site/cms/download/res
/mangena_pike_Report_April_2010.pdf
[12]. R. Lambert, C. Leuz, and R. Verrecchia, "Accounting information,
disclosure, and the cost of capital". Journal of Accounting Research,
2007, 45 (2): 385-420.
[13]. S. D. Tweedie, "Prepared statement of Sir David Tweedie, Chairman of
the IASB, before the Economic and Monetary Affairs Committee of the
European Parliament", (2006), available online: http://www.iasplus.
com/resource/0601tweedieeuspeech.pdf
[14]. Siqi Li., "Does Mandatory Adoption of International Financial
Reporting Standards in the European Union Reduce the Cost of Equity
Capital?", 2010, The Accounting Review, Vol.85, No.2, pp.607-636
[1]. A. Levitt, "The Importance of High Quality Accounting Standards",
Accounting Horizons, 1998, 12(1):79-82.
[2]. C. Leuz, R. Verrecchia, "The economic consequences of increased
disclosure", Journal of Accounting Research,2000,38 (Supplement): 91-
124.
[3]. C.A.Botosan, "Disclosure Level and the Cost of Capital", The
Accounting Review, 1997, Vol.72, No.3, pg 323-349
[4]. C. Armstrong, M. Barth, A. Jagolinzer, and E. Riedl. ÔÇ×"Market reaction
to the adoption of IFRS in Europe". The Accounting Review, 2010, 85
(1): 31-61.
[5]. Daske H., L. Hail, C. Leuz, and R. Verdi. (2007). "Adopting a label:
Heterogeneity in the economic consequences of IFRS adoption".
Working paper, University of Manneheim, the Wharton School,
University of Chicago, and MIT, available at: http://papers.ssrn.com/
sol3/papers.cfm?abstract_id=1502413
[6]. Daske H., L. Hail, C. Leuz, and R. Verdi (2008). Mandatory IFRS
reporting around the world: Early evidence on the economic
consequences. Journal of Accounting Research 46 (5): 1085-1142,
disponibil si la: http://ssrn.com/abstract=1024240
[7]. H. Chen, Q Tang., Y. Jiang , Z. Lin, "The Role of IFRS in Accounting
Quality: Evidence from European Union", Journal of International
Financial Management & Accounting, 2010, Vol.21 (3)
[8]. H. Ashbaugh, M. Pinicus, "Domestic Accounting Standards,
International Accounting Standards, and the Predictability of Earnings",
Journal of Accounting Research, 2001, 39 (3): 417-434.
[9]. I.Ionascu, M. Ionascu, L. Olimid, D.A. Calu, "An Empirical Evaluation
of the Costs of Harmonizing Romanian Accounting with International
Regulations (EU Directives and IAS/IFRS), Accounting in Europe,
2007, Vol.4.Issue 2, pp 169-206.
[10]. L. Munteanu, I. Ionascu, M. Ionascu, "Disclosure quality and the Cost of
Capital: Evidence for Romania", "Financial Audit", 2011, Vol.9, No.1,
pp.16-20.
[11]. M. Mangena, R. Pike, J. Li (2010). Intellectual Capital Disclosure
Practices and Effects on the Cost of Equitz Capital: UK Evidence,
Published by The Institute of Chartered Accountants of Scotland, (2010)
online available: http://www.icas.org.uk/site/cms/download/res
/mangena_pike_Report_April_2010.pdf
[12]. R. Lambert, C. Leuz, and R. Verrecchia, "Accounting information,
disclosure, and the cost of capital". Journal of Accounting Research,
2007, 45 (2): 385-420.
[13]. S. D. Tweedie, "Prepared statement of Sir David Tweedie, Chairman of
the IASB, before the Economic and Monetary Affairs Committee of the
European Parliament", (2006), available online: http://www.iasplus.
com/resource/0601tweedieeuspeech.pdf
[14]. Siqi Li., "Does Mandatory Adoption of International Financial
Reporting Standards in the European Union Reduce the Cost of Equity
Capital?", 2010, The Accounting Review, Vol.85, No.2, pp.607-636
@article{"International Journal of Business, Human and Social Sciences:57879", author = "Lucian Munteanu", title = "The Benefits of IFRS Adoption – A Survey of Chief Financial Officers of Romanian Listed Companies", abstract = "The move towards internationalization of accounting encountered a great boost, when in 2002 EU delegated the IASB to provide the accounting standards to be applied inside its frontiers. Among the incentives of the standardization of accounting on the international level, is the reduction of the cost of capital. Romania made the move towards IFRS before EU, when the country was not yet a member of it. Even if this made Romania a special case, it was scarcely approached. The leak of real data is usually the reason for avoiding. The novelty of this paper is that it offers an insight from the reality of Romanian companies and their view regarding the IFRS. The paper is based on a survey that the authors made among the companies listed on the first two tiers of the Bucharest Stock Exchange (BSE), which are basically, the most important companies in the country.
", keywords = "Cost of capital, IFRS, information asymmetry, transparency.", volume = "5", number = "11", pages = "1566-6", }
