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Year 2015, Volume: 2 Issue: 2, 0 - 0, 29.06.2015

Abstract

References

  • Alali, F. A., & Foote, P. S. (2012), The Value Relevance of International Financial Reporting Standards: Empirical
  • Evidence in an Emerging Market, The International Journal of Accounting, 47(1), p.85–108. Alford, A., Jones, J., Leftwich, R., & Zmijewski, M. (1993), The relative informativeness of accounting disclosures in different countries, Journal of Accounting Research, p.183–223.
  • Ali, A., & Hwang, L.-S. (2000), Country-specific factors related to financial reporting and the value relevance of accounting data, Journal of Accounting Research, p.1–21.
  • Anandarajan, A., & Hasan, I. (2010), Value relevance of earnings: Evidence from Middle Eastern and North
  • African Countries, Advances in Accounting, 26(2), p.270–279. Ashbaugh, H., & Pincus, M. (2001), Domestic accounting standards, international accounting standards, and the predictability of earnings, Journal of Accounting Research, 39(3), p.417–434.
  • Bahadir, O., & Tolga, B. (2013), Accounting Policy Options under IFRS: Evidence from Turkey, Journal of
  • Accounting and Management Information Systems, 12(3), p.388–404. Ball, R., & Brown, P. (1968), An Empirical Evaluation of Accounting Income Numbers, Journal of Accounting Research, 6(2), p.159.
  • Ball, R., Kothari, S. P., & Robin, A. (2000), The effect of international institutional factors on properties of accounting earnings, Journal of Accounting and Economics, 29(1), p.1–51.
  • Ball, R., Robin, A., & Wu, J. S. (2003), Incentives versus standards: properties of accounting income in four East
  • Asian countries, Journal of Accounting and Economics, 36(1-3), p.235–270. Balsari, C. K., & Varan, S. (2014), IFRS implementation and studies in Turkey, Accounting and Management
  • Information Systems, 13(2), p.373–399. Bao, B.-H., & Chow, L. (1999), The usefulness of earnings and book value for equity valuation in emerging capital markets: evidence from listed companies in the People’s Republic of China, Journal of International Financial
  • Management & Accounting, 10(2), p.85–104. Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001), The relevance of the value relevance literature for financial accounting standard setting: another view, Journal of Accounting and Economics, 31(1), p.77–104.
  • Barth, M. E., Landsman, W., Lang, M., & Williams, C. (2006), Accounting quality: International accounting standards and US GAAP, Manuscript, Stanford University.
  • Barth, M. E., Landsman, W. R., & Lang, M. H. (2008), International Accounting Standards and Accounting Quality,
  • Journal of Accounting Research, 46(3), p.467–498. Beaver, W. H. (1968), The Information Content of Annual Earnings Announcements, Journal of Accounting Research, 6, p.67.
  • Bilgic, F. A., & Ibis, C. (2013), Effects of New Financial Reporting Standards on Value Relevance–A Study about
  • Turkish Stock Markets, International Journal of Economics and Finance, 5(10). Cengiz, H. (2014), Effects Of International Financial Reporting Standards Application On Financial Ratios In
  • Turkey, International Journal, 10(21). Chen, H., Tang, Q., Jiang, Y., & Lin, Z. (2010), The role of International Financial Reporting Standards in accounting quality: evidence from the European Union, Journal of International Financial Management & Accounting, 21(3), p.220–278.
  • Clarkson, P., Hanna, J. D., Richardson, G. D., & Thompson, R. (2011), The impact of IFRS adoption on the value relevance of book value and earnings, Journal of Contemporary Accounting & Economics, 7(1), p.1–17.
  • Corina, M., & Nicolae, M. (2012), Quality Of Accounting Information To Optimize The Decisional Process. Annals of Faculty of Economics, p.694–699.
  • Dechow, P. M. (1994), Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals, Journal of Accounting and Economics, 18(1), p.3–42.
  • Djatej, A., Gao, G., Sarikas, R. H. S., & Senteney, D. L. (2011), Eastern and Western European firms public and private information quality: The comparative impact of degree of implementation of IFRS, Emerging Markets Review, 12(2), p.111–129.
  • Easton, P. D., & Harris, T. S. (1991), Earnings as an explanatory variable for returns, Journal of Accounting Research, p.19–36.
  • Ely, K., & Waymire, G. (1999), Accounting standard-setting organizations and earnings relevance: longitudinal evidence from NYSE common stocks, 1927-93, Journal of Accounting Research, p.293–317.
  • Fiador, V. O. (2013), Corporate governance and value relevance of financial information: evidence from the Ghana Stock Exchange, Corporate Governance, 13(2), p.208–217.
  • Fields, T. D., Lys, T. Z., & Vincent, L. (2001), Empirical research on accounting choice, Journal of Accounting and Economics, 31(1), p.255–307.
  • Francis, J., & Schipper, K. (1999), Have Financial Statements Lost Their Relevance? Journal of Accounting Research, 37(2), p.319.
  • Gafarov, T. (2009), Information filters–factors influencing on accounting information.
  • Gürarda, Ş. (2013), IFRS Adoption & Market Reaction: Istanbul Stock Exchange Case, International Journal of
  • Business Management & Economic Research, 4(6). Haller, A., Ernstberger, J., & Froschhammer, M. (2009), Implications of the mandatory transition from national
  • GAAP to IFRS — Empirical evidence from Germany, Advances in Accounting, 25(2), p.226–236. Harris, T., Lang, M., & Möller, H. (1994), The value relevance of German accounting measures: An emioirical analaysis, Journal of Accounting Research, 32.
  • Holthausen, R. W., & Watts, R. L. (2001), The relevance of the value-relevance literature for financial accounting standard setting, Journal of Accounting and Economics, 31(1), p.3–75.
  • International Accounting Standards Board. (2010), The Conceptual Framework for Financial Reporting.
  • Jeanjean, T., & Stolowy, H. (2008), Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption, Journal of Accounting and Public Policy, 27(6), p.480–494.
  • Joos, P., & Lang, M. (1994), The effects of accounting diversity: Evidence from the European Union, Journal of
  • Accounting Research, p.141–168. Karampinis, N. I., & Hevas, D. L. (2011), Mandating IFRS in an Unfavorable Environment: The Greek Experience.
  • The International Journal of Accounting, 46(3), p.304–332. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2012), Intermediate accounting. Hoboken, NJ: Wiley.
  • Kohlbeck, M., & Warfield, T. (2010), Accounting standard attributes and accounting quality: Discussion and analysis, Research in Accounting Regulation, 22(2), p.59–70.
  • Lev, B. (1989), On the usefulness of earnings and earnings research: Lessons and directions from two decades of empirical research, Journal of Accounting Research, p.153–192.
  • Ohlson, J. A. (1995), Earnings, book values, and dividends in equity valuation*, Contemporary Accounting Research, 11(2), p.661–687.
  • Paananen, M., & Lin, C. (2007), The development of accounting quality of IAS and IFRS over time: The case of
  • Germany, Available at SSRN 1066604.
  • Pekdemir, R., & Türel, A. (2014), An attempt to understand compliance degree of implementing international standards in accountancy: The Turkey experience, Academy of Accounting & Financial Studies Journal, 18(1).
  • Rahman, A., Yammeesri, J., & Perera, H. (2010), Financial reporting quality in international settings: A comparative study of the USA, Japan, Thailand, France and Germany, The International Journal of Accounting, 45(1), p.1–34.
  • Stvilia, B., Gasser, L., Twidale, M. B., & Smith, L. C. (2007), A framework for information quality assessment,
  • Journal of the American Society for Information Science and Technology, 58(12), p.1720–1733.
  • The IFRS Foundation and the IASB. (2013, May 26), The move towards global standards.

RELEVANCY OF ACCOUNTING INFORMATION UNDER IFRS AT BORSA ISTANBUL (BIST) FOR MANUFACTURING FIRMS

Year 2015, Volume: 2 Issue: 2, 0 - 0, 29.06.2015

Abstract

This study aims to measure the impact of IFRS adoption on the relevancy of accounting information at the manufacturing firms listed in Borsa Istanbul. To achieve the objectives of the study, a regression model is applied on a dataset divided into two periods; the first covers the pre adoption period from 1996 to 2004, and the second covers the post adoption period from 2005 to 2013. The applied regression model aims to measure the explanatory power of book values and earnings to explain stock prices. The result of the cross-sectional analysis shows that the relevancy of accounting information increases after the adoption of IFRS. However, when quarterly data is used, the result shows that the relevancy declines after the adoption of IFRS.

References

  • Alali, F. A., & Foote, P. S. (2012), The Value Relevance of International Financial Reporting Standards: Empirical
  • Evidence in an Emerging Market, The International Journal of Accounting, 47(1), p.85–108. Alford, A., Jones, J., Leftwich, R., & Zmijewski, M. (1993), The relative informativeness of accounting disclosures in different countries, Journal of Accounting Research, p.183–223.
  • Ali, A., & Hwang, L.-S. (2000), Country-specific factors related to financial reporting and the value relevance of accounting data, Journal of Accounting Research, p.1–21.
  • Anandarajan, A., & Hasan, I. (2010), Value relevance of earnings: Evidence from Middle Eastern and North
  • African Countries, Advances in Accounting, 26(2), p.270–279. Ashbaugh, H., & Pincus, M. (2001), Domestic accounting standards, international accounting standards, and the predictability of earnings, Journal of Accounting Research, 39(3), p.417–434.
  • Bahadir, O., & Tolga, B. (2013), Accounting Policy Options under IFRS: Evidence from Turkey, Journal of
  • Accounting and Management Information Systems, 12(3), p.388–404. Ball, R., & Brown, P. (1968), An Empirical Evaluation of Accounting Income Numbers, Journal of Accounting Research, 6(2), p.159.
  • Ball, R., Kothari, S. P., & Robin, A. (2000), The effect of international institutional factors on properties of accounting earnings, Journal of Accounting and Economics, 29(1), p.1–51.
  • Ball, R., Robin, A., & Wu, J. S. (2003), Incentives versus standards: properties of accounting income in four East
  • Asian countries, Journal of Accounting and Economics, 36(1-3), p.235–270. Balsari, C. K., & Varan, S. (2014), IFRS implementation and studies in Turkey, Accounting and Management
  • Information Systems, 13(2), p.373–399. Bao, B.-H., & Chow, L. (1999), The usefulness of earnings and book value for equity valuation in emerging capital markets: evidence from listed companies in the People’s Republic of China, Journal of International Financial
  • Management & Accounting, 10(2), p.85–104. Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001), The relevance of the value relevance literature for financial accounting standard setting: another view, Journal of Accounting and Economics, 31(1), p.77–104.
  • Barth, M. E., Landsman, W., Lang, M., & Williams, C. (2006), Accounting quality: International accounting standards and US GAAP, Manuscript, Stanford University.
  • Barth, M. E., Landsman, W. R., & Lang, M. H. (2008), International Accounting Standards and Accounting Quality,
  • Journal of Accounting Research, 46(3), p.467–498. Beaver, W. H. (1968), The Information Content of Annual Earnings Announcements, Journal of Accounting Research, 6, p.67.
  • Bilgic, F. A., & Ibis, C. (2013), Effects of New Financial Reporting Standards on Value Relevance–A Study about
  • Turkish Stock Markets, International Journal of Economics and Finance, 5(10). Cengiz, H. (2014), Effects Of International Financial Reporting Standards Application On Financial Ratios In
  • Turkey, International Journal, 10(21). Chen, H., Tang, Q., Jiang, Y., & Lin, Z. (2010), The role of International Financial Reporting Standards in accounting quality: evidence from the European Union, Journal of International Financial Management & Accounting, 21(3), p.220–278.
  • Clarkson, P., Hanna, J. D., Richardson, G. D., & Thompson, R. (2011), The impact of IFRS adoption on the value relevance of book value and earnings, Journal of Contemporary Accounting & Economics, 7(1), p.1–17.
  • Corina, M., & Nicolae, M. (2012), Quality Of Accounting Information To Optimize The Decisional Process. Annals of Faculty of Economics, p.694–699.
  • Dechow, P. M. (1994), Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals, Journal of Accounting and Economics, 18(1), p.3–42.
  • Djatej, A., Gao, G., Sarikas, R. H. S., & Senteney, D. L. (2011), Eastern and Western European firms public and private information quality: The comparative impact of degree of implementation of IFRS, Emerging Markets Review, 12(2), p.111–129.
  • Easton, P. D., & Harris, T. S. (1991), Earnings as an explanatory variable for returns, Journal of Accounting Research, p.19–36.
  • Ely, K., & Waymire, G. (1999), Accounting standard-setting organizations and earnings relevance: longitudinal evidence from NYSE common stocks, 1927-93, Journal of Accounting Research, p.293–317.
  • Fiador, V. O. (2013), Corporate governance and value relevance of financial information: evidence from the Ghana Stock Exchange, Corporate Governance, 13(2), p.208–217.
  • Fields, T. D., Lys, T. Z., & Vincent, L. (2001), Empirical research on accounting choice, Journal of Accounting and Economics, 31(1), p.255–307.
  • Francis, J., & Schipper, K. (1999), Have Financial Statements Lost Their Relevance? Journal of Accounting Research, 37(2), p.319.
  • Gafarov, T. (2009), Information filters–factors influencing on accounting information.
  • Gürarda, Ş. (2013), IFRS Adoption & Market Reaction: Istanbul Stock Exchange Case, International Journal of
  • Business Management & Economic Research, 4(6). Haller, A., Ernstberger, J., & Froschhammer, M. (2009), Implications of the mandatory transition from national
  • GAAP to IFRS — Empirical evidence from Germany, Advances in Accounting, 25(2), p.226–236. Harris, T., Lang, M., & Möller, H. (1994), The value relevance of German accounting measures: An emioirical analaysis, Journal of Accounting Research, 32.
  • Holthausen, R. W., & Watts, R. L. (2001), The relevance of the value-relevance literature for financial accounting standard setting, Journal of Accounting and Economics, 31(1), p.3–75.
  • International Accounting Standards Board. (2010), The Conceptual Framework for Financial Reporting.
  • Jeanjean, T., & Stolowy, H. (2008), Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption, Journal of Accounting and Public Policy, 27(6), p.480–494.
  • Joos, P., & Lang, M. (1994), The effects of accounting diversity: Evidence from the European Union, Journal of
  • Accounting Research, p.141–168. Karampinis, N. I., & Hevas, D. L. (2011), Mandating IFRS in an Unfavorable Environment: The Greek Experience.
  • The International Journal of Accounting, 46(3), p.304–332. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2012), Intermediate accounting. Hoboken, NJ: Wiley.
  • Kohlbeck, M., & Warfield, T. (2010), Accounting standard attributes and accounting quality: Discussion and analysis, Research in Accounting Regulation, 22(2), p.59–70.
  • Lev, B. (1989), On the usefulness of earnings and earnings research: Lessons and directions from two decades of empirical research, Journal of Accounting Research, p.153–192.
  • Ohlson, J. A. (1995), Earnings, book values, and dividends in equity valuation*, Contemporary Accounting Research, 11(2), p.661–687.
  • Paananen, M., & Lin, C. (2007), The development of accounting quality of IAS and IFRS over time: The case of
  • Germany, Available at SSRN 1066604.
  • Pekdemir, R., & Türel, A. (2014), An attempt to understand compliance degree of implementing international standards in accountancy: The Turkey experience, Academy of Accounting & Financial Studies Journal, 18(1).
  • Rahman, A., Yammeesri, J., & Perera, H. (2010), Financial reporting quality in international settings: A comparative study of the USA, Japan, Thailand, France and Germany, The International Journal of Accounting, 45(1), p.1–34.
  • Stvilia, B., Gasser, L., Twidale, M. B., & Smith, L. C. (2007), A framework for information quality assessment,
  • Journal of the American Society for Information Science and Technology, 58(12), p.1720–1733.
  • The IFRS Foundation and the IASB. (2013, May 26), The move towards global standards.
There are 47 citations in total.

Details

Journal Section Articles
Authors

Mohammed Alashi This is me

Tuba Dumlu This is me

Publication Date June 29, 2015
Published in Issue Year 2015 Volume: 2 Issue: 2

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APA Alashi, M., & Dumlu, T. (2015). RELEVANCY OF ACCOUNTING INFORMATION UNDER IFRS AT BORSA ISTANBUL (BIST) FOR MANUFACTURING FIRMS. Journal of Economics Finance and Accounting, 2(2).

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