The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France

LAUR Repository

Show simple item record

dc.contributor.author Harakeh, Mostafa
dc.contributor.author Lee, Edward
dc.contributor.author Walker, Martin
dc.date.accessioned 2020-01-10T13:13:16Z
dc.date.available 2020-01-10T13:13:16Z
dc.date.copyright 2018 en_US
dc.date.issued 2020-01-10
dc.identifier.issn 1744-9499 en_US
dc.identifier.uri http://hdl.handle.net/10725/11698 en_US
dc.description.abstract We examine the potential for IFRS to influence the market for SEOs in the UK and France. The divergence between the UK domestic accounting standards and IFRS is minor (low-divergence firms) whereas domestic accounting standards in France differ materially from IFRS (high-divergence firms); however, both countries have similar legal enforcement and institutional settings that might confound the effect of IFRS adoption. We argue that IFRS adoption serves to mitigate information asymmetry and improve accounting quality. Accordingly, we find that, following IFRS adoption, earnings management activities decrease among high-divergence firms prior to issuing SEOs. As a result of the lower levels of earnings management and information asymmetry, we predict and find that the market reaction to issuing SEOs improves significantly for high-divergence firms following IFRS. Given that equity financing becomes less costly, we find that the propensity to issue new SEOs increases among high-divergence firms after IFRS adoption. We find no similar changes among low-divergence firms. The results persist after running a matched-sample analysis and controlling for potential self-selection bias. en_US
dc.language.iso en en_US
dc.title The differential impact of IFRS adoption on aspects of seasoned equity offerings in the UK and France en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 200701866 en_US
dc.author.department Finance And Accounting en_US
dc.description.embargo N/A en_US
dc.relation.journal Accounting in Europe en_US
dc.journal.volume 16 en_US
dc.journal.issue 1 en_US
dc.article.pages 106-138 en_US
dc.keywords IFRS en_US
dc.keywords Information asymmetry en_US
dc.keywords Earnings management en_US
dc.keywords Seasoned equity offerings en_US
dc.keywords Equity financing en_US
dc.identifier.doi https://doi.org/10.1080/17449480.2018.1531141 en_US
dc.identifier.ctation Harakeh, M., Lee, E., & Walker, M. (2019). The Differential Impact of IFRS Adoption on Aspects of Seasoned Equity Offerings in the UK and France. Accounting in Europe, 16(1), 106-138. en_US
dc.author.email mostafa.harakeh@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://www.tandfonline.com/doi/full/10.1080/17449480.2018.1531141 en_US
dc.orcid.id https://orcid.org/0000-0003-3294-4391 en_US
dc.author.affiliation Lebanese American University en_US

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search LAUR

Advanced Search


My Account