IFRS adoption and firm value: African evidence

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

doi:10.1080/01559982.2020.1766755

IFRS adoption and firm value: African evidence

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

Research output: Contribution to Journal › Article › peer-review

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 language	English
Pages (from-to)	238-261
Number of pages	24
Journal	Accounting Forum
Volume	44
Issue number	3
Early online date	17 Jun 2020
DOIs	https://doi.org/10.1080/01559982.2020.1766755
Publication status	Published - 2 Jul 2020

Bibliographical note

ISSN: 0155-9982

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities
SDG 16 Peace, Justice and Strong Institutions

Keywords

IFRS adoption
firm value
rule of law
Africa
financial constraint
Accounting
Finance

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Machokoto_etal_T&F_2020_IFRS_adoption_and_firm_value_African_evidenceAccepted author manuscript, 1.43 MB

Cite this

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AU - Amankwa-Amoah, Joseph

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AU - Fosu, Samuel

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IFRS adoption and firm value: African evidence

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

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