IFRS adoption and firm value: African evidence

Agyei-Boapeah, Henry, Machokoto, Michael, Amankwah-Amoah, Joseph, Tunyi, Abongeh and Fosu, Samuel (2020) IFRS adoption and firm value: African evidence. Accounting Forum, 44 (3). pp. 238-261. ISSN 0155-9982

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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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Accounting and Finance
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 11 May 2022 06:58
Last Modified: 11 May 2022 07:30
URI: http://sro.sussex.ac.uk/id/eprint/105810

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