Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.14279/9476
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dc.contributor.authorCharitou, Andreas-
dc.contributor.authorKaramanou, Irene-
dc.contributor.authorLambertides, Neophytos-
dc.date.accessioned2017-02-06T07:01:50Z-
dc.date.available2017-02-06T07:01:50Z-
dc.date.issued2015-
dc.identifier.citationJournal of Accounting, Auditing and Finance, 2015, vol. 30, no. 2, pp. 150-180.en_US
dc.identifier.issn0148558X-
dc.identifier.urihttps://hdl.handle.net/20.500.14279/9476-
dc.description.abstractUnlike prior studies that examine the denominator effect, this study investigates the cash flow effect of disclosure as captured by firms exhibiting increases in default risk (DR) around the 2005 mandatory International Financial Reporting Standards (IFRS) adoption in Europe. Using the Merton (1973, 1974) option-based probability of default measure (DR) on a data set of 415 winner firms (with decreases in DR) and 295 loser firms (with increases in DR), we show that loser firms exhibit the same or better financial characteristics in the pre-IFRS adoption period compared with the winner sample. However, after IFRS, loser firms exhibit deteriorating characteristics, with smaller increases in their Tobin's q valuations, greater increases in leverage, and poorer return performance. Logistic analysis suggests that even though in the pre-IFRS period loser firms exhibit greater profitability and analyst following and lower leverage, in the post-IFRS period their profitability is less than that of winner firms while exhibiting similar leverage and analyst following characteristics. Through an examination of the determinants of the change in DR, the results suggest that loser firms incur a greater increase in DR the poorer their home country's legal enforcement environment, the lower their analyst following, and the greater their propensity to manage earnings. In general, our results are consistent with the existence of a significant cash flow effect for the loser sample.en_US
dc.formatpdfen_US
dc.language.isoenen_US
dc.relation.ispartofJournal of Accounting, Auditing & Financeen_US
dc.rights© The Author(s) 2014.en_US
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 United States*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/us/*
dc.subjectCash flow effecten_US
dc.subjectDefault risken_US
dc.subjectDisclosureen_US
dc.subjectIFRS adoptionen_US
dc.subjectLosersen_US
dc.titleWho Are the Losers of IFRS Adoption in Europe? An Empirical Examination of the Cash Flow Effect of Increased Disclosureen_US
dc.typeArticleen_US
dc.doi10.1177/0148558X14549458en_US
dc.collaborationUniversity of Cyprusen_US
dc.collaborationCyprus University of Technologyen_US
dc.subject.categoryEconomics and Businessen_US
dc.journalsOpen Accessen_US
dc.countryCyprusen_US
dc.subject.fieldSocial Sciencesen_US
dc.publicationPeer Revieweden_US
dc.identifier.doi10.1177/0148558X14549458en_US
dc.relation.issue2en_US
dc.relation.volume30en_US
cut.common.academicyear2014-2015en_US
dc.identifier.spage150en_US
dc.identifier.epage180en_US
item.fulltextWith Fulltext-
item.openairecristypehttp://purl.org/coar/resource_type/c_6501-
item.openairetypearticle-
item.grantfulltextopen-
item.languageiso639-1en-
item.cerifentitytypePublications-
crisitem.author.deptDepartment of Finance, Accounting and Management Science-
crisitem.author.facultyFaculty of Tourism Management, Hospitality and Entrepreneurship-
crisitem.author.orcid0000-0003-2864-1793-
crisitem.author.parentorgFaculty of Management and Economics-
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