IFRS adoption and firm value: African evidence

Henry Agyei-Boapeah, Michael Machokoto, Joseph Amankwa-Amoah, Abongeh Tunyi, Samuel Fosu

Research output: Contribution to JournalArticle

Abstract

We examine the impact of the adoption of International Financial Reporting Standards (IFRS) on firm value using a sample of African listed firms selected over the 2000–2015 period. Our results show that the adoption of IFRS positively impacts firm value. We further find that the impact of IFRS adoption on firm value is more pronounced in environments where there is a greater commitment to the rule of law. Moreover, the increase in firm value is more pronounced for firms with a higher degree of financial constraints. Finally, additional results suggest that the benefits of fully implementing IFRS are higher than those arising from partial/modified adoption. Our results are robust to controlling for other factors that affect firm value and to alternative sampling procedures.
Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalAccounting Forum
Early online date17 Jun 2020
DOIs
Publication statusE-pub ahead of print - 17 Jun 2020

Bibliographical note

ISSN: 0155-9982

Keywords

  • IFRS adoption
  • firm value
  • rule of law
  • Africa
  • financial constraint

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