Voluntarily Ifrs Adoption By European Unlisted Firms

Download or read book Voluntarily IFRS Adoption by European Unlisted Firms written by Mara Cameran and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of the voluntary adoption of International Financial Reporting Standards (IFRS) by unlisted firms on both their financial reporting quality and on their cost of debt. Using a large international sample of unlisted EU companies where the choice of IFRS is voluntary, we find that IFRS adoption has a positive impact on financial reporting quality and results in a decrease in the cost of debt. In addition, unlisted firms adopting IFRS are more likely to be acquired or go public in the years subsequent to the adoption, relative to other unlisted firms. We document a tangible benefit of a voluntary IFRS adoption by unlisted firms.