Please use this identifier to cite or link to this item: https://ktisis.cut.ac.cy/handle/10488/23737
Title: Are analyst stock recommendation revisions more informative in the post-IFRS period?
Authors: Charitou, Andreas 
Karamanou, Irene 
Kopita, Anastasia 
Major Field of Science: Social Sciences
Field Category: Economics and Business
Keywords: Disclosure;Enforcement;Financial analysts;IFRS;Informativeness;Recommendations
Issue Date: 1-Jan-2018
Source: Journal of Business Finance and Accounting, 2018, vol. 45, no. 1-2, pp. 115-139
Volume: 45
Issue: 1-2
Start page: 115
End page: 139
Journal: Journal of Business Finance & Accounting 
Abstract: This paper investigates whether the mandatory IFRS adoption has affected the informativeness of analyst recommendation revisions in Europe. Although prior studies document that IFRS adoption improved analyst forecast attributes, the impact of IFRS cannot be completely assessed without examining how the market reacts to information-rich events in an environment with enhanced disclosure. To examine this question we utilize a difference-in-differences design using as main control sample firms that had voluntarily adopted IFRS before the EU's mandated switch. Overall, our evidence suggests that after the mandatory adoption of IFRS, both analyst upgrades and downgrades are more informative. These results hold after controlling for a number of variables that capture analyst, firm and information environment characteristics and are robust to a number of sensitivity analyses including the use of a US control sample. Finally, we examine whether our results are sensitive to the level of accounting enforcement. We find that analyst downgrades are more informative in the post-IFRS period for firms in both high and low enforcement environments. Analyst upgrades, however, are more informative only if they are issued for firms in high enforcement countries.
URI: https://ktisis.cut.ac.cy/handle/10488/23737
ISSN: 0306686X
DOI: 10.1111/jbfa.12286
Rights: Attribution-NonCommercial-NoDerivatives 4.0 International
Type: Article
Affiliation : University of Cyprus 
University of Essex 
Appears in Collections:Άρθρα/Articles

CORE Recommender
Show full item record

SCOPUSTM   
Citations 50

10
checked on May 23, 2022

WEB OF SCIENCETM
Citations

10
Last Week
0
Last month
checked on May 23, 2022

Page view(s) 50

28
Last Week
0
Last month
1
checked on May 26, 2022

Google ScholarTM

Check

Altmetric


This item is licensed under a Creative Commons License Creative Commons